Thousands of Byju's and Paytm employees on job hunt after firms run into deep trouble
Employees at edtech major Byju's and fintech giant Paytm are seeking safer pastures as both firms run into trouble.
ADVERTISEMENT
Crisis-hit edtech and fintech firms Byju's and Paytm are seeing a surge in their employees who are looking for safer pastures and going on job hunts. A 5X jump was reported in jobseekers from Paytm in the days that followed the RBI crackdown on the company. Usually, the typical active count of accessible talent from Paytm was in the 800 to 1,200 range. However, the job market currently has over 6,000 active and accessible talent from Paytm.
Meanwhile, once India's most-valued startup at $22 billion, Byju's has experienced a dramatic fall as it battles everything from cash crunch and legal battles to investors asking for a leadership overhaul. Byju's brand image is severely battered, following the crises.
A day after a group of Byju’s investors had launched a campaign to oust the leadership, the management at Byju’s hit back at them in a letter addressing the employees. They went on to accuse the investors of conspiring against them during the moment of crisis.
The letter read, "...We must address an unfortunate development. Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of BYJU'S. We are pained to see this action from a few of the investors who should have supported us in our fight at these challenging times, instead of directly speaking to the media. The founders are the largest investors and the greatest fighters for BYJU’S.”
About 7000 employees at Byju's are currently active and accessible in the job market, as per reports.
Paytm continue karo
The board of One97 Communications Ltd recently formed a panel headed by N. Damodaran, a former chairman of India’s markets regulator, to advise Paytm Payments Bank Ltd on compliance and regulation a day after the banking regulator criticised the lender for repeated non-compliance of rules.
The committee, led by Damodaran and comprising two other members, will work with the board of One97 Communications to strengthen compliance and regulatory matters, the company told the exchanges.
On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, citing prolonged non-compliance to prudential regulations.
The decision to form the panel came a day after the RBI criticised the payments bank operations for repeated non-compliance to prudential regulations, including know-your-customer norms (KYC) norms and anti-money laundering rules.
Crisis-hit Paytm is also working on solutions and is to operate as a third-party app for UPI to ensure users can use its services. One97 Communications Limited, the parent company of Paytm, is focusing on the third-party payment app (TPAP) route to ensure that the fintech major's Unified Payments Interface (UPI) remains available to its users, according to reports.
The fintech major’s UPI service falls under the Paytm Payments Bank Limited (PPBL); on January 31, PPBL was barred by the Reserve Bank of India (RBI) from taking money from customers after February 29.
