Byju's has vacated all its office spaces retaining only the headquarters in Bengaluru. This strategic step was taken to reduce costs and address its financial issues.
According to CapTable, Byju's has given up all the office spaces retaining only its headquarters at IBC Knowledge Park in Bengaluru to cut costs amid its financial troubles. Additionally, CapTable stated that this strategic move occurred in Byju's due to the ongoing liquidity concerns that have arisen from a dispute with the investors regarding funds raised in a recently concluded rights issue offering.
Notably led by India CEO Arjun Mohan, the organization has instructed all the employees to work from home indefinitely, excluding those working from around 300 of Byju's Tuition Centres.
The edtech, Byju's was gradually shutting down the branches in different locations for a few months and was not renewing the lease contracts as the leases expired.
Founder and group CEO Byju Raveendran in an earlier letter to employees had accused the investors of hindering salary disbursements to employees. On this, the company confirmed disbursed a certain portion of their salaries for February 2024 while the remaining portion will be transferred to employees once they get permission to access funds from the closed rights issue. Currently, Byju's has around 15,000 employees.
Byju's India CEO Arjun Mohan, has undertaken the startup's India operations in September, 2023. After taking over the company, Arjun Mohan has framed cost-cutting measures for Byju's and laid off thousands of employees as a part of the process. Last month, Byju's investors managed to get a stay order from the National Company Law Tribunal (NCLT) to the company's usage of funds raised through the company's US$200 million rights issue. Adding to this, NCLT also directed the company to keep the funds as part of the right issue in an escrow account.
According to sources, Justices K Biswal and Manoj Kumar Dubey of the NCLT Bengaluru bench asked Byju's parent Think & Learn and the investors to file written submissions for the stay order.
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