Byju’s gives up almost all office spaces across India, mandates employees to work from home.
India’s once most valuable start-up is fighting to survive. In 2018, Byju Raveendran was the toast of India’s start-up world as his eponymous edtech company, Byju’s, was crowned a unicorn.
In a significant cost-cutting effort to address the imminent liquidity crisis, embattled edtech company Byju’s has given up all offices across India, retaining only its headquarters at IBC, Knowledge Park, Bengaluru.
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.
This comes at a time when the company has been engaged in a dispute with its investors regarding the validity of the funds raised from a recently concluded rights issue offering.
The company has now mandated that all employees work from home indefinitely, except for those working out of its headquarters and approximately 300 Byju’s Tuition Centres across the country.
This also comes at a time when the company has held back part of February salaries for about 75 percent of its employees. The company currently has close to 14,000 employees in India. Byju’s, disbursed the payments after delaying it for about 10 days and promised to pay the balance once it is allowed to use the funds from the recently closed rights issue.
According to sources close to the company, the decision to shut down all offices in the country was a part of the Byju’s India CEO Arjun Mohan’s restructuring plan.
