Being Stuck in a Rut, Byju's shuts all the Corporate Offices, saves Bengaluru one

Edtech Startup, which is in news due to its financial troubles has recently informed that, it has given up all its corporate offices and only managed to secure its headquarter in Bengaluru, which is in Bengaluru's Knowledge Park.

The company has officially instructed to all its employees to work from home for an indefinite period, leaving only those who works at nearly 300 Byju's Tuition Centres across India.

This decision was reflected so early because of the shortage of liquidation. This comes at a time when the company is suffling with a dispute over the validity and usage of the funds raised via a recently concluded $200 million rights issue. 

According to the spokesperson, this complete shutdown of all the corporate offices of Byju’s is part of the strategic plan of CEO Arjun Mohan's restructuring plan. One of the sources quoted, "This has been in works for over six months. The company has been shutting down offices across the country as soon the lease for each expired."

Meanwhile, Byju’s has cleared a part of the pending salaries for all employees for the month of February and promised that, it will pay the balance as soon as it can access the funds from the rights issue. Presently, the company has 14000 employees in India. The edtech farm has also arranged alternate funding source for the smooth functioning of the employee’s daily expenses. The issues with timely payment of salaries to Byju's employees can be attributed to the funds raised through the $200 million rights issue being locked in a separate account due to the management's ongoing feud with the investors.

After the panemic, the edtech farm is repeatedly facing obstacles. These include laying off thousands of employees, dwindling venture capital funding, a slowdown in the demand for online learning, and an oppression and mismanagement suit filed by four of its investors with the National Company Law Tribunal.

The major issue faced by the company was that, they were unable to present detailed financial results for FY23 to the Ministry of Corporate Affairs. The company has somehow managed to survive through the promotion of Arjun Mohan as CEO and funding from early investor Ranjan Pai. Also it has established an advisory committee with the likes of Rajnish Kumar and Mohandas Pai on board.