Edtech company Byju's, which is facing cash crunch, decided to close all its offices. Also, all the working employees have been asked to work from home.
However, this decision will not include people working in 300 tuition centers of BYJU's. The company will now only operate its headquarters located at IBC Knowledge Park in Bengaluru. This change is part of the restructuring plan of the company's CEO Arjun Mohan.
CapTable has given this information quoting sources. This decision has come at a time when the company has not even paid the full salary for February to 75% of its employees. The company has about 14,000 employees in India.
Earlier, last week on March 2, company founder Byju Raveendran had assured to pay salaries to the employees by March 10. But the company could pay only a part of the salary to the employees on this day.
On March 2, Raveendran had said that the company has raised funds through rights issue. But it cannot be used to pay salary because it has been locked in a separate account due to opposition from investors.
Byju's investors Prosus NV, Peak This fund raising is 99% less than the previous round. The previous funding round was at a valuation of $ 22 billion i.e. about Rs 1.82 lakh crore.
Byju's investors have accused the company of embezzlement of $533 million (about Rs 4,411 crore) in the US and have demanded a ban on the rights issue worth Rs 1,655 crore. This has been described as illegal and against the law.
Earlier, Byju's founder Byju Raveendran had mortgaged his house as well as the houses of his family members to pay salaries to the employees. He raised around Rs 100 crore by mortgaging two houses in Bengaluru and paid salaries to around 15,000 employees.
