Edtech major Byju's has given up all its office spaces in India. The company has only retained its Bengaluru based headquarters. This move has been taken to cut costs and address its financial constraint, as per The CapTable. Because of its decision to sell offices, employees will have permanent work from home.
The company is already in a battle with its investors about its $200 million rights issue. On February 28, NCLT allowed Byju’s to go ahead with its $200 million rights issue and asked the firm to keep its proceeds in an escrow account. Keeping the rights of investors in mind, it asked the company to extend the last date.
At the NCLT, investors of the company said that the decision to initiate a rights issue was in violation of regulations and unlawful. Conversely, the board of directors, comprising founder Byju Raveendran, his wife and co-founder Divya Gokulnath, and his brother Riju Raveendran, argued that the decision of the investors was hindering the company’s progress.
Eventually, four investors from edtech firm Byju’s have filed caveats in the Supreme Court. It has been filed with the request that they be heard before any decision is taken on a potential plea by the National Company Law Tribunal (NCLT).
Meanwhile, the company recently released the full salary of 25 per cent of employees in the lower pay scale. For the rest of the workforce, it has made partial payments, as per PTI.
