Byju's vacates office spaces, asks employees to work from home

Byju's crisis: Byju's vacates all office spaces except headquarters in Bengaluru.
Byju's vacates office spaces, asks employees to work from home
Jaano Junction

Byju's has asked all of their employees to start working from home immediately and has vacated all of its office spaces barring its headquarters at IBC, Knowledge Park, Bengaluru.

According to the report, the decision was made to tackle the upcoming liquidity crisis. The closure of all offices across the country is said to be a decision of Byju's India CEO Arjun Mohan's restructuring strategy.

The embattled edtech company has been in a legal tussle with its investors regarding the legitimacy of funds raised from a recently completed rights issue offering.

Byju's has been facing a crisis and has laid off thousands of employees in th past year. It has also defaulted on paying the full salaries of its employees for the month of February. It released a part of the salaries on Sunday and promised to pay the rest once it is able to use the funds from the rights issue.

The edtech company is facing financial challenges, including cash-flow issues and a dispute with creditors over a $1.2 billion loan.

Once valued at over $20 billion, Byju's has experienced a major decline in its valuation, estimated at around 90 percent over the past year.

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Byju's vacates office spaces, asks employees to work from home

The company's major stakeholders recently voted to remove Byju Raveendran from his position as chief executive officer (CEO) and strip him of his authority.

However, Byju Raveendran has contested this decision, claiming that the resolution was passed during a meeting attended only by a "small cohort of select shareholders."

In a statement, the company asserted that the resolutions from the extraordinary general meeting were invalid and ineffective.

Byju Raveendran, the founder and former CEO, has faced a loss of support from key investors following a series of crises.

These crises include the resignation of the auditor Deloitte over concerns regarding corporate governance, as well as a legal dispute with lenders in the United States.

In a communication to the staff, Raveendran acknowledged the firm's financial struggles, citing the inability to process February salaries due to funding being blocked by investors.

Source: India Today

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