Byju’s, EdTech company, relinquishes 4 lakh sq ft Bengaluru office

• ByStartupStory     |    February 20, 2024

Byju’s, the financially troubled edtech giant, has downsized its office space in Bengaluru, vacating a 400,000 sq ft property at Prestige Tech Park to cut costs. 

The termination of the lease earlier this year, with the deposit being utilized to offset rental arrears, reflects the company’s ongoing disputes with landlords and allegations of defaulting on rental payments. 

According to sources cited by The Economic Times, Byju’s had been paying approximately Rs 4 crore per month for the office space leased with Prestige Group around 3.5 years ago. 

The company is also facing legal action from Kalyani Developers for failing to pay rent for a 500,000 sq ft office space at Kalyani Tech Park, Bengaluru, during a lock-in period until March 2025. Regarding the situation with Kalyani Developers, a source revealed, “So far, the total due to the builder is ten months, of which they adjusted seven months’ rent with the deposit.” Byju’s had previously vacated a 400,000 sq ft office at IBC Knowledge Park and relocated operations from Kalyani Tech Park between 2022 and 2023. 

Despite owning these properties, they are no longer in use, as confirmed by sources. Juggy Marwaha, CEO of Prestige Office Ventures, confirmed the lease termination in January, stating, “Byju’s continues to hold the assets, but no one operates from here.” 

The downsizing of office space comes amidst Byju’s parent company, Think and Learn, securing a commitment of $300 million from investors for its ongoing rights issue. Additionally, Byju’s floated a rights issue in January to raise $200 million through equity rights issue at a significantly reduced valuation.

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