The most valuable edtech company in India, Byju’s has vacated its largest office space in Bengaluru in a bid to cut costs and shore up liquidity amid a delay in funding. The company has also given up a portion of another office space in the city, reported Moneycontrol.
Byju’s has three office spaces in Bengaluru which includes the 5.58 lakh square feet property in Kalyani Tech Park that was vacated by the company. The firm has asked its employees to work from its other premises or from their homes from July 23. Employees confirmed that Byju’s has also vacated two out of nine floors it owns in Prestige Tech Park.
A Byju’s spokesperson said, “Byju's has over 3 million square feet of rented spaces across the country to support its requirements. Expansion and reduction in office space is based on changes in working policies and business priorities which is very regular and is aimed at boosting operational efficiencies.”
The edtech firm took two buildings – Magnolia and Ebony – in Kalyani Tech Park in Brookfield on lease in June last year, of which it has vacated Magnolia and shifted the employees to Ebony last month. All employees have been asked to work from Prestige Tech Park and its main office on Baneghatta Main Road, Moneycontrol further reported citing employees.
Security personnel at Kalyani Tech Park also confirmed the reports saying that the company will be giving up Ebony in August. Byju’s had leased five floors in Magnolia and six floors in Ebony. Security officials said that the company has already vacated four out of the six floors in Ebony last week and will give up the rest by August.
Byju’s is expected to save around Rs 3 crores on monthly rent by giving up on the office spaces. The company vacating office spaces comes amidst financial stress at the country’s most-valued unicorn, which is also battling other problems including with lenders. The company was expected to close a deal to bring over USD 700 million funds at the start of the year, but has not been able to do so.
