‘In the latest, Byju’s has announced the shutdown of all its offices across Bharat, keeping only its headquarters at IBC, Knowledge Park, Bengaluru’, according to a report by Moneycontrol.
This move comes after an action to address the happening crisis faced by edtech.
This decision has been taken after a heated dispute with investors about the validity of funds raised from a recent $200 million rights issue offering. Due to the dispute, Byju’s has found itself facing financial issues, leading to delays in the payments of salaries.
According to the media sources, ‘Byju’s had requested to the National Company Law Tribunal (NCLT) to allow it to use the funds. In its order, the NCLT directed the edtech to place funds obtained from the rights issue in an escrow account.
The tribunal did not allow funds to be withdrawn until the matter was resolved. The company stated that it has made finding arrangements to ensure employees receive their paychecks.
With close to 14,000 employees in Bharat, Byju’s has now made it compulsory that all employees should work from home, with the exception of those working at approximately 300 Byju’s Tuition Centres scattered across the country.
The decision comes as a part of a broader restructuring plan lead by Byju’s Bharat CEO Arjun Mohan, aimed at optimising resources and enhancing operational efficiency.
The company had also closed many office spaces in Gurugram and Bangalore in July last year, while also carrying out layoffs.
The edtech company continues to struggle with challenges, including delays in financial reporting, legal disputes with lenders, and a cash crunch.
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