BYJU’S Vacates Offices To Save Costs

Edtech giant BYJU’S has reportedly vacated multiple offices in Bengaluru in a move to save rental costs.

BYJU’S has three offices in Bengaluru, including two buildings in Kalyani Tech Park, nine floors in Prestige Tech Park and its largest office in India at IBC Knowledge Park, Bannerghatta.

The edtech giant has vacated the 5.58 Lakh square feet property in Kalyani Tech Park, Moneycontrol reported citing on-ground security staff and BYJU’S employees. 

The edtech had taken two buildings – Magnolia and Ebony – in Kalyani Tech Park on lease last June. It vacated Magnolia in June, shifting the employees to Ebony. According to employees cited by the publication, the company has also given up two of the nine floors it rented in Prestige Tech Park.

It has asked all the employees to work from Prestige Tech Park and IBC Knowledge Park. The employees were directed to work from these locations or home from July 23 onwards.

Confirming the development, a BYJU’S spokesperson told Inc42, “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 are aimed at boosting operational efficiencies.”

The move reportedly saves BYJU’S around INR 3 Cr in monthly rent and points to the scale of the financial stress the edtech finds itself under.

Over the past 18 months, the Byju Raveendran-led edtech behemoth has witnessed massive highs and lows. It hit a sky-high valuation of $22 Bn in March 2022 after raising $800 Mn in funding while reporting losses of over INR 4,500 Cr for the year ended March 31, 2021, in September 2022.

This year, the edtech giant has witnessed a drawn-out legal tussle with its creditors, the resignations of key board members and statutory auditor and mass layoffs, not to mention the heat from government agencies, including the Enforcement Directorate (ED), the Ministry of Corporate Affairs and the Employees’ Provident Fund Organisation (EPFO).

However, it might get relief soon as media reports suggest that the edtech giant has agreed with its Term Loan B lenders to restructure the $1.2 Bn loan, which will include the creditors dropping their demand for accelerated repayment. The move comes weeks after BYJU’S brought the lenders to the table for negotiations.