BYJU’S gives up its office spaces in India amid worsening liquidity crisis
BYJU’S was paying close to Rs 10 crore per month in monthly rent for more than 100 office spaces it had as of mid-2023. All these, have now been given up and employees have been asked to work from home.
BYJU'S has given up all its office spaces in the country, except its headquarters in Bengaluru, in the latest cost-cutting move, as the company continues battling a deepening liquidity crisis amid a legal tussle with investors.
The embattled edtech company has asked all its 20,000 employees to work from home, multiple people told The CapTable. Except for IBC Knowledge Park in Bengaluru, which was the company’s first large office space in the country and also its headquarters, all the office spaces have been given up temporarily to save crores in monthly rent, the people said, requesting anonymity.
As of mid-2023, had more than 100 offices across the country, with multiple spaces in major cities like Delhi NCR and Bengaluru, according to sources. The company claimed to have over three million square feet of rented space in the country as of July last year when it vacated its largest office space in India of about 5.58 lakh square feet in Bengaluru’s Kalyani Tech Park. Last month, BYJU'S further downsized its office spaces in the city as it was sent legal notices by landlords, The Economic Times reported.
BYJU'S FY22 financials, which represent the company's high point, show significant rental expenses close to Rs 10 crore per month. It's important to note that this figure likely encompasses not just office space rent, but also storage facilities for BYJU'S learning materials like tablets.
Further, early in FY23, right after COVID restrictions were lifted, BYJU'S added more offices, including the one as mentioned above at Kalyani Tech Park, as it sought to expand aggressively.
BYJU'S' move to give up office spaces highlights the company’s harrowing cash position. The company delayed salary payments to employees in January and even for February, it is yet to fully disburse the salaries.
The company said that it has disbursed part of salaries to all employees, which will reflect by March 11, and the rest, the company will only be able to pay once it is allowed to use the $200 million it raised through a rights issue last month. BYJU'S was directed by the National Company Law Tribunal (NCLT) to keep the money raised in an escrow account, as the rights issue was contested by four of the company’s major investors.
Edited by Ranjan Crasta
