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.
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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.
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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.
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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.
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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