Edtech firm BYJU'S has processed employees' May salaries from the month's business collections, sources close to the company said on Monday.

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Last year, the founders of the edtech firm had to pledge their house to raise debt for paying employees' salaries.

"The salaries for the month of May have been processed for BYJU'S employees and will be credited today. This milestone is particularly significant for BYJU'S as the salaries have been paid from the company's collections for the month," a source said.

The company in the past month also raised various debts to bear the salary expenses as it has not been able to use the USD 200 million fund raised through rights in February.

"Over recent months, BYJU'S has implemented a series of strategic initiatives aimed at optimising operations and strengthening its financial health. The ability to cover salary expenses from the monthly collections underscores the positive impact of these measures," the source said.

A group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures, had approached the NCLT against the company management and the rights issue.

The hearing in the matter before NCLT Bengaluru is listed on June 6.