Edtech

Edtech Giant Byju’s Vacates Largest Bengaluru Office Space to Cut Costs amid Funding Delay

• ByStartupStory     |    July 24, 2023

India’s most valued edtech company Byju’s has made a significant cost-cutting move by vacating its largest office space in Bengaluru amid a delay in securing funding. The move comes as the company seeks to shore up liquidity and navigate financial stress. Byju’s had three office spaces in Bengaluru, including the 5.58 lakh square feet property in Kalyani Tech Park, which has been vacated. Employees have been asked to work from the company’s other premises or from home starting July 23.

The edtech firm has also vacated two out of the nine floors it occupied in Prestige Tech Park. Overall, Byju’s has over 3 million square feet of rented office space across India. The company had leased buildings Magnolia and Ebony in Kalyani Tech Park in Brookfield last year but had already vacated Magnolia the previous month. Now, employees have been shifted to Ebony. Byju’s had leased five floors in Magnolia and six floors in Ebony, but it has vacated four of the six floors in Ebony and will vacate the rest by August, resulting in significant savings on monthly rent, nearly Rs 3 crore.

Byju’s financial challenges have been evident with its prolonged search for over $700 million in fund infusion since the beginning of the year. However, the company has yet to finalize the deal. The edtech firm has faced other financial issues as well, including non-payment of Provident Fund (PF) dues, resulting in scrutiny from the Employee Provident Fund Organisation (EPFO). Byju’s had only paid PF for 738 employees for June, despite an agreement with EPFO to clear dues before July 15.

In addition to vacating office spaces and facing funding delays, Byju’s had laid off over 1,000 employees last month as part of its cost-cutting measures. The company also faced scrutiny from the Enforcement Directorate in April, which searched its Bengaluru office space under the provisions of the Foreign Exchange Management Act. Furthermore, the company has yet to file audited results for FY22. In FY21, Byju’s reported a significant loss of over 4,500 crores, while its revenue saw only a marginal dip.

Byju’s actions reflect the challenges the edtech giant is facing in maintaining financial stability amid funding uncertainties and regulatory scrutiny.

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