Byju's Implements Strategic Shift to Remote Work, Closes Offices Amid Financial Challenges
Byju's strategic shift, prompted by liquidity concerns and a dispute with investors over funds from a recent rights issue offering, is detailed in reports on the edtech unicorn
sociapanews Staff
In a strategic move to alleviate financial strain, Byju's, the prominent edtech unicorn, has vacated all its offices throughout India, now operating solely from its headquarters at IBC Knowledge Park in Bengaluru, according to sources cited by CapTable.
This decision, led by Byju's India CEO Arjun Mohan as part of a comprehensive restructuring plan, aims to address the company's ongoing liquidity concerns stemming from a dispute with investors over funds raised in a recently concluded rights issue offering.
As part of the restructuring, all employees have been directed to work remotely indefinitely, with the exception of those operating from approximately 300 Byju's Tuition Centres.
Sources revealed that the process of vacating offices has been underway for over six months, with Byju's gradually closing locations as leases expire.
Earlier reports suggested that Byju's had partially disbursed pending salaries for February 2024, intending to settle the remainder once granted access to funds from the closed rights issue. Byju's clarified that part of the February salaries was processed from non-rights issue capital, with the full amount expected to be reflected in employees' accounts by March 11.
Addressing concerns about potential disruptions, the startup reassured stakeholders that alternative fund arrangements have been made.
In a related development, the National Company Law Tribunal (NCLT) deferred its verdict on a petition filed by Byju's investors, potentially clearing the path for the company's $200-million rights issue. Justices K Biswal and Manoj Kumar Dubey of the NCLT Bengaluru bench deferred their order, instructing Byju's parent Think & Learn and the investors to submit written statements. Sources indicate that Byju's will proceed with its planned rights issue.
However, there are suggestions that investors involved in the NCLT petition may choose not to participate in this rights issue, according to an additional source.
