Byju's shifts to remote work, closes offices nationwide amid financial turmoil

India’s Edtech firm, Byju's, has implemented a permanent work-from-home policy for its employees, with the exception of nearly 300 Byju's Tuition Centres.

The company's decision to vacate all offices across the country, retaining only its Bengaluru headquarters at IBC Knowledge Park, is part of a cost-cutting move driven by financial challenges and an ongoing dispute with investors over funds raised in a recently concluded rights issue offering, as reported by CapTable.

According to Byju's India CEO Arjun Mohan's restructuring plan, the company had been gradually shutting down offices over the past six months as the leases for each location expired.

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Earlier reports indicated that Byju's had disbursed portions of pending salaries for February 2024 and aimed to settle the remaining balance once permitted to access funds from the closed rights issue.

Byju's clarified that it processed part of February salaries from non-rights issue capital, expecting the full amount to reflect in employees' accounts by March 11.

The company reassured its commitment to students, saying that it had made alternative fund arrangements to prevent disruptions in the daily lives of its employees.

Despite the financial challenges, Byju's $200-million rights issue may find some relief.

The National Company Law Tribunal (NCLT) postponed making a decision on a petition that Byju's investors had filed last month.

The NCLT Bengaluru bench, comprising Justices K Biswal and Manoj Kumar Dubey, asked Byju's parent Think & Learn and the investors to submit written statements while deferring the order.

Sources revealed that Byju's will proceed with its planned rights issue, potentially overcoming the hurdles raised by concerned investors who may choose to abstain.

This move comes as Byju's strives to navigate its way through an imminent liquidity crisis.