Byju’s gives up office spaces across India, mandates WFH amid cash-crunch

Embattled edtech company Byju’s has given up all offices across India, while retaining only its headquarters at IBC, Knowledge Park, Bengaluru. The decision to shut down all its offices in the country is a part of Byju’s India CEO Arjun Mohan’s restructuring plan, said sources.

“This has been in works for over six months. The company has been shutting down offices across the country as soon the lease for each expired,” the source added.

The edtech has decided that all employees work from home indefinitely, except for the ones working out of approximately 300 Byju’s tuition centres across the country.

The company has downsized its office space in Bengaluru, vacating its office space at Prestige Tech Park.

• Also read: Byju’s to delay salaries amid dispute with investors, says Raveendran

This comes at a time when the edtech major is embroiled in issues with a select group of its investors over validity of the funds raised from the rights issue.

Byju’s has delayed salary payments to employees in January and even in February. It is yet to fully disburse the salaries. The company currently has around 14,000 employees.

The company said that it has disbursed part of salaries to all employees, and the rest, the company will only be able to pay once it is allowed to use the $200 million it raised through a rights issue last month.

Byju’s has been directed by the National Company Law Tribunal (NCLT) to keep the money raised in an escrow account, as the rights issue was contested by four of the company’s major investors.

• Also read: Byju’s to keep proceeds of rights issue in separate account, consider extending closure date: NCLT

NCLT cases

The Bengaluru bench of National Company Law Tribunal (NCLT), in its order passed on February 27, has directed Byju’s that the proceeds from the rights issue is to be kept in a separate account till the disposal of the oppression and mismanagement plea filed by the company’s investors.

In separate hearing, NCLT has asked the company to respond to insolvency petitions filed by US lenders and the Board of Control for Cricket in India (BCCI).

The embattled edtech is facing troubles from all front. The recently-concluded extraordinary general meeting (EGM) by the investors of Think & Learn (T&L), the parent company of Byju’s, voted on and passed several resolutions at the EGM, including the removal of CEO Byju Raveendran from the company and the change of the board, which currently includes his wife and co-founder Divya Gokulnath and his brother Riju Raveendran.

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