PF Contribution: Edtech firm Byju’s has once again delayed the deposit of PF of its employees. Earlier, the PF of April and May was not deposited, due to which the company faced a lot of flak. Explain that the books of accounts of Byju’s, an edtech firm surrounded by difficulties related to financial and corporate governance, are also being investigated.
Employees’ Provident Fund Organization (EPFO) data shows that Byju’s has made PF payments of Rs 14.6 lakh in the name of 738 employees for June. While the company has again delayed depositing the PF of a large number of employees. In a mail sent to EPFO on June 27, Byju’s had said that the company has settled the PF payment till May. The company had agreed to pay the June PF by July 15.
Byju’s had released PF payments for 24,818 employees on June 26, after last month’s tussle over delay in PF payments. Earlier, Byju’s did not make PF contribution for April and May, while for January, February and March the company paid PF for only 10,000-13,000 employees.
According to many industry experts, Byju’s delay in PF payment may be an indication of cash flow pressure in the company. The edtech firm, which was last valued at $22 billion, has cut costs and vacated some offices. Byju’s vacated its largest office space in the country amid long-pending funding round and talks with lenders on its existing debt obligations.
Byju’s has already officially laid off more than 2,000 employees. While most of its workforce has been done on contract. According to EFPO data, in September 2022, Byju’s had around 60,000 employees on its payroll.