Byju’s has relinquished about 6,20,000 square feet of office space in Bengaluru as the edtech major is looking to slash costs and raise capital amid a series of crises.
The terminated office assets include 550,000 sq ft in Kalyani Tech Park in Whitefield and 70,000 sq ft in IBC Knowledge Park, people aware of the matter said. Both these assets were given up between 2022 and 2023.
Byju’s parent company Think and Learn continues to hold 350,000 sq ft in Prestige Tech Park on the Outer Ring Road and 150,000 sq ft in IBC Knowledge Park at Dairy Circle in the city.
“Think & Learn has signed most of the spaces between 2021 and 2022 but wants to realign the portfolio so there is no extra overhead cost,” said one of the people cited above. “The company’s main focus is to raise capital.”
Another person said the company is paying rent of around Rs 90 per sq ft for its office in IBC Knowledge Park. “The leadership team works from this premise, and we don’t see the premise being vacated,” the person said.
Byju’s spokesperson confirmed that the company had vacated the rented space at Kalyani Tech Park and IBC Knowledge Park stating that no further reduction in office space is being discussed at the moment.“Byju’s continues to have 3 million square feet of rented spaces across the country to support its requirements. Expansion and reduction in office space are based on changes in working policies and business priorities which are very regular and are aimed at boosting operational efficiencies,” said the spokesperson in an emailed response.
Byju’s is facing several crises including the departure of an auditor and three board members in June, legal battles with creditors of a $1.2-billion term loan, US-based investors who have accused it of hiding $500 million as well as the Board of Control for Cricket in India (BCCI) over a sponsorship payment dispute, and an Enforcement Directorate (ED) probe into alleged violation of foreign exchange laws.
The company has expressed its intent to resolve these issues. Arjun Mohan, the recently appointed CEO of Byju’s India operations, launched a restructuring initiative that is likely to impact over 4,000 employees. Also, an advisory council was established in July, comprising Rajnish Kumar, ex-chairman of State Bank of India, and T V Mohandas Pai, former CFO and director of Infosys.
In November, Ranjan Pai’s $170 million investment in Byju’s subsidiary Aakash Educational Services enabled a loan resolution from Davidson Kempner.
