Byju’s, the popular edtech platform, has taken a cost-cutting measure by vacating all its offices across India, except for its Bengaluru headquarters at IBC Knowledge Park. This decision is a response to the company’s ongoing financial difficulties, linked to a dispute with investors over funds raised in a recent rights issue offering, as reported by CapTable.
To streamline operations and save on expenses, Byju’s India CEO Arjun Mohan has led a restructuring plan, instructing all employees, except those at around 300 Byju’s Tuition Centres, to work remotely indefinitely.
The process of vacating offices has been ongoing for over six months, with Byju’s gradually closing down locations as leases expire, according to sources.
Earlier reports mentioned that Byju’s had partially distributed salaries for February 2024, with plans to settle the remaining amount once allowed to access funds from the closed rights issue. Byju’s clarified that it processed part of the salaries using non-rights issue capital, expecting the full amount to reflect in employees’ accounts by March 11.
Addressing concerns about potential disruptions, the startup assured it had made alternative fund arrangements.
In a bit of relief, the National Company Law Tribunal (NCLT) recently postponed its decision on a petition filed by Byju’s investors, potentially paving the way for the company’s $200-million rights issue. Byju’s parent company, Think & Learn, and the investors were asked to submit written statements, and sources suggest that Byju’s is likely to proceed with its planned rights issue.”
