Byju’s has implemented a work-from-home policy for all its employees, with the exception of those at its Bengaluru headquarters in IBC Knowledge Park and staff at 300 Byju’s tuition centers, who will continue to work onsite, as per a report by Moneycontrol. This move is part of a strategy to address an anticipated liquidity crisis, leading to the closure of its offices nationwide, a plan devised under the restructuring strategy led by Byju’s India CEO, Arjun Mohan.
The company, a leading player in the edtech sector, is currently embroiled in legal disputes with investors over the validity of fundraising through a recent rights issue. Byju’s has encountered significant challenges over the last year, including laying off thousands of employees, delays in salary payments for February, and ongoing financial disputes including a $1.2 billion loan disagreement with creditors.
After once boasting a valuation of over $20 billion, Byju’s has seen its valuation plummet by approximately 90 percent within a year. A recent vote by major stakeholders resulted in the removal of Byju Raveendran as CEO, though Raveendran disputes the legality of this action, arguing that it was passed by a minority of shareholders.
The company and Raveendran have faced multiple crises, including the resignation of their auditor Deloitte due to governance concerns and legal battles with U.S. lenders. Amid these challenges, Raveendran admitted to the company’s financial difficulties in a staff memo, highlighting the blocked funds from investors as a reason for the delay in processing February salaries.
