Byju's vacates massive 4 lakh sq ft office space in Bengaluru amid ongoing financial challenges: Report

The troubles for the once edtech giant Byju's seem unending. The company has reportedly reduced its office space in Bengaluru, vacating a 400,000 sq ft property at Prestige Tech Park in an effort to cut costs.

The decision comes as the company continues to grapple with financial challenges, aiming to reduce its operational costs.

According to an ET report, The lease termination occurred earlier this year, with the company utilizing the deposit to cover outstanding rent dues.

Kalyani Developers' legal notice to Byju's

The report said that Kalyani Developers has also issued a legal notice to Byju's for failing to pay rent for a 500,000 square feet office space at Kalyani Tech Park, also located in Bengaluru.

The property, which is under a lock-in period until March 2025, has seen ten months of rent dues, with seven months' worth being adjusted against the deposit. 

Reducing office space amid financial challenges

Byju's has not only left the premises at Prestige Tech Park but also vacated another 400,000 square feet office at IBC Knowledge Park between 2022 and 2023, shifting operations away from Kalyani Tech Park. Despite holding these assets, The company has ceased operations from these locations, indicating a strategic pullback in physical office space usage.

Juggy Marwaha, CEO of Prestige Office Ventures, confirmed the lease termination with Byju's in January. Marwaha highlighted efforts to realign rents and offer relaxation to Byju's amidst their financial difficulties. However, due to continued delays in rental payments, the decision was made to adjust the security deposit and reclaim the office space, a resolution was reached amicably between both parties.

Byju's gets a commitment of $300 million from investors

Amid rising financial challenges, Byju's parent company, Think and Learn, has received a commitment of $300 million from investors for its ongoing rights issue, which is set to close by the end of February.

In January this year, Byju's floated a rights issue to raise $200 million through an equity rights issue at a $220-250 million valuation, a massive 99% reduction from the peak of $22 billion.

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