SUMMARY
BYJU'S has not cleared dues to Salesforce, Tableau and Tooljet for about two months, raking up total vendor payments between INR 45 and INR 50 Cr
As per a company spokesperson, the edtech giant is in the process of transitioning out third-party services in favour of in-house systems
The move to discontinue third-party solutions and transition to internal systems highlight the embattled startup’s efforts to cut costs
BYJU’S employees have lost access to many data management tools, including Salesforce after the edtech giant reportedly didn’t clear monthly payments of these platforms.
The edtech major uses tools such as Leadsquared, Orderhive and Salesforce, alongside data visualisation software such as Tableau and Tooljet. On August 31, all employees lost access to Salesforce, Tableau and Tooljet, Moneycontrol reported citing sources.
BYJU’S has not cleared dues to Salesforce, Tableau and Tooljet for about two months, raking up total vendor payments between INR 45 Cr and INR 50 Cr. Leadsquared has scaled back its services, while Orderhive will suspend access to its services starting from September 1 due to non-payment of dues since December last year, the people added.
However, Salesforce access was restored earlier today (September 1).
A spokesperson for BYJU’S said that the edtech firm has been transitioning out third-party software tools.
“BYJU’S has a high calibre tech team that has been building a robust and cost-efficient tech backbone and progressively transitioning out third-party software tools and platforms. The purpose of building a single platform for all content management, classroom and CRM solutions is to ensure a secure and seamless transition of information for all stakeholders within and outside the company’s ecosystem,” the spokesperson said.
The spokesperson added that much of the software was transitioned out several quarters ago.
The move to discontinue third-party solutions and transition to internal systems highlight the startup’s efforts to cut costs. BYJU’S also vacated its biggest office space in Bengaluru in July, while also laying off hundreds of employees. The edtech company has also gone conservative on marketing efforts as it looks to achieve profitability next financial year.
Earlier this week, four senior executives departed from the edtech, including BYJU’S CBO Prathyusha Agarwal and WhiteHat Jr CEO Ananya Tripathi.
BYJU’S has been fighting wars on multiple fronts for some time now. In June, the company faced a significant setback when three crucial members of its board decided to step down. Further, its longtime auditor, Deloitte, also resigned in June.
The edtech giant is currently in negotiations with creditors, including term loan B lenders and Davidson Kempner, for restructuring. It has been getting closer to a settlement with both lenders.
Amid the controversies, the edtech giant also constituted a board advisory council, appointing industry veterans such as TV Mohandas Pai and Rajnish Kumar as advisors. Recently, BYJU’S also onboarded Richard Lobo to lead its human resources department.
