Edtech giant BYJU’S has reportedly vacated multiple offices in Bengaluru as part of a cost-saving measure. The company had three offices in the city, including two buildings in Kalyani Tech Park, nine floors in Prestige Tech Park, and its largest office in India at IBC Knowledge Park, Bannerghatta.
Details of Office Vacations
According to reports from on-ground security staff and BYJU’S employees, the edtech giant has vacated the 5.58 Lakh square feet property in Kalyani Tech Park. Last June, BYJU’S had taken two buildings – Magnolia and Ebony – in Kalyani Tech Park on lease but later vacated Magnolia, shifting its employees to Ebony. Moreover, the company has given up two of the nine floors it rented in Prestige Tech Park.
BYJU’S New Work Arrangements
As part of the move, BYJU’S has asked all its employees to work from either Prestige Tech Park or IBC Knowledge Park. This decision took effect from July 23 onwards.
BYJU’S Response to the Office Space Reduction
A spokesperson from BYJU’S confirmed the development and stated, “BYJU’S has over 3 Mn 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 aimed at boosting operational efficiencies.”
Financial Challenges and Recent Developments
The office space reduction is seen as a move to save around INR 3 Cr in monthly rent and highlights the financial stress BYJU’S is facing. Despite hitting a valuation of $22 Mn in March 2022 after raising $800 Mn in funding, the company reported losses of over INR 4,500 Cr for the year ended March 31, 2021. Additionally, the platform has been dealing with legal issues, board member resignations, statutory auditor changes, mass layoffs, and scrutiny from government agencies like the Enforcement Directorate (ED), Ministry of Corporate Affairs, and the Employees’ Provident Fund Organisation (EPFO). However, there is potential relief on the horizon, with media reports suggesting that BYJU’S has reached an agreement with its Term Loan B lenders to restructure the $1.2 Bn loan, which would include creditors dropping their demand for accelerated repayment. This development comes after the platform initiated negotiations with the lenders.
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