- Byju’s, India’s most valued edutech company, has vacated its largest office space in Bengaluru, as it seeks to cut costs.
- “Byju’s has over 3 million square feet of rented spaces across the country to support its requirements. Expansion and reduction in office space are based on changes in working policies and business priorities”- a spokesperson said.
- Byju’s has been eyeing an over $700 million fund infusion since the start of the year, but the company has not been able to close it.
- Byju’s had come under the scanner of the EPFO over non-payment of PF dues, another instance highlighting cash flow issues for the company.
- Byju’s also laid off over 1,000 employees last month, in what was another cost-cutting initiative.
Byju’s, India’s most valued edutech company, has vacated its largest office space in Bengaluru, as it seeks to cut costs and shore up liquidity amid a delay in funding. It has also given up a portion of another office space in the city, sources said.
Byju’s has three office spaces in Bengaluru, including the 5.58 lakh square feet property in Kalyani Tech Park that it has vacated. The company has asked the employees to work out of its other premises or from their homes from July 23, at least six employees confirmed to a news agency. The company has also given up two out of nine floors it had in Prestige Tech Park, the employees said.
“Byju’s has over 3 million square feet of rented spaces across the country to support its requirements. Expansion and reduction in office space are based on changes in working policies and business priorities which are very regular and are aimed at boosting operational efficiencies,” a spokesperson for Byju’s said.
Security personnel at Kalyani Tech Park confirmed the development and said the company will be exiting Ebony by August. Byju’s had leased five floors in Magnolia and six floors in Ebony. According to employees and security officials, it vacated four out of the six floors in Ebony last week and will give up the rest by August. The company had leased these spaces with a lock-in period of three years. Vacating the leased office space of about 5.58 lakh sq ft, the company will save close to Rs 3 crore on monthly rent.
Byju’s move to vacate office spaces attains significance as it highlights the financial stress at the country’s most-valued unicorn, which is tackling multiple problems, including a tussle with lenders. Byju’s has been eyeing an over $700 million fund infusion since the start of the year, but the company has not been able to close it.
Last month, Byju’s had come under the scanner of the Employees Provident Fund Organisation (EPFO) over non-payment of PF dues, in what was another instance highlighting cash flow issues for the company. Byju’s also laid off over 1,000 employees last month, in what was another cost-cutting initiative. Byju’s Tuition Center (BTC) employees, were planning a pan-India protest on July 25 amid speculation of more layoffs.
Byju’s touched a new high in March last year when it raised a massive $800 million round at a $22-billion valuation. The company, which counts backers like Peak XV Partners (formerly Sequoia Capital India), Prosus, and Sofina among others, recently was in deep waters after the resignation of its auditor, and the departure of three key investor board members. But since then, the company has come under fire for several more reasons, including accounting irregularities, tussles with lenders, mass layoffs, and mounting losses.
Byju’s offices in Bengaluru were also searched by the Enforcement Directorate, a financial investigation agency in April. For FY21 (2020-21), Byju’s reported a huge jump in losses to more than Rs 4,500 crore, while its revenue dropped marginally, surprisingly, as FY21 was the first year of Covid that gave online learning companies a shot in the arm.
Founded over a decade ago by former teacher Byju Raveendran, Byju’s has raised over $5 billion, most of which was in the past five years.
(With inputs from agencies)
