Amid financial troubles and ongoing liquidity concerns, Byju's has made a decision to vacate all its office spaces across the country. Howver this excludes the edtech firm's headquarters located at IBC Knowledge Park in Bengaluru, reports CapTable, citing sources. This move, aimed at cutting costs, comes in the wake of a dispute with investors regarding funds raised in a recently concluded rights issue.
The restructuring initiative, spearheaded by Byju's India CEO Arjun Mohan, entails directing all employees to work remotely indefinitely, except for those operating from approximately 300 of Byju's Tuition Centres. Sources revealed that this decision has been in the pipeline for over six months, with Byju's gradually shuttering locations as leases expire.
In efforts to alleviate concerns regarding potential disruptions, the company has assured that alternative fund arrangements have been made.
Earlier this week, Byju's had announced that pending salaries for February 2024 had been partially processed. For this the company usednon-rights issue capital, with the expectation of settling the remainder once permitted access to funds from the closed rights issue.
Last month, the National Company Law Tribunal (NCLT) deferred its verdict on a petition filed by Byju's investors, potentially paving the way for the company's $200-million rights issue. However, according to the company, it has been forced to keep those funds in an escrow account.