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Business News/ Companies / News/  Byju's vacates all offices except HQ to cut costs, shifts to remote work, says report
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Byju's vacates all offices except HQ to cut costs, shifts to remote work, says report

This move is strategic and prompted by the edtech unicorn's ongoing liquidity concerns, arising from a dispute with investors regarding funds raised in a recently concluded rights issue offering, it added.

File image of Byju Raveendran, founder and CE of Think and Learn, the parent of edtech startup Byju's (Paul Yeung / Bloomberg)Premium
File image of Byju Raveendran, founder and CE of Think and Learn, the parent of edtech startup Byju's (Paul Yeung / Bloomberg)

Byju's has vacated all its office spaces across India, retaining only its headquarters at IBC Knowledge Park in Bengaluru to cut costs amid its financial troubles, CapTable reported citing sources.

This move is strategic and prompted by the edtech unicorn's ongoing liquidity concerns, arising from a dispute with investors regarding funds raised in a recently concluded rights issue offering, it added.

Also Read | Byju's was in need of an experienced guide, says former SBI Chief Rajnish Kumar

As part of the restructuring plan led by Byju's India CEO Arjun Mohan, the company has directed all employees to work from home indefinitely, excluding those operating from around 300 of Byju's Tuition Centres.

The decision to vacate offices has been under process for over six months, with Byju's gradually shutting down locations as leases expire, sources told the publication.

Also Read | Byju's transfers $533 million to non-US subsidiary, Camshaft no longer in charge

Earlier reports indicated that Byju's had disbursed portions of pending salaries for February 2024, aiming to settle the remainder once permitted to access funds from the closed rights issue. Byju's clarified that it processed part of February salaries from non-rights issue capital, anticipating the full amount to be reflected in employees' accounts by March 11.

Addressing concerns about potential disruptions, the startup also assured it had made alternative fund arrangements.

Also Read | Have Paytm and Byju's debacles dented Indian startups' prospects? Experts weigh in

Some Relief

Last month, the National Company Law Tribunal (NCLT) deferred its verdict on a petition filed by Byju's investors, thus potentially paving the way for the company's $200-million rights issue.

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 while deferring its order. Sources told Mint Byju's will thus go ahead with its planned rights issue.

Also Read | Struck by Byju's, General Atlantic's India ship is in distress. Will it survive?

Investors who approached the NCLT will likely give this rights issue a miss, another source said.

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Published: 12 Mar 2024, 07:33 AM IST
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