Byju’s tells employees to WFH as it gives up office spaces amid cash crunch
"We processed part salaries for everyone for February. The company will pay the balance once the rights issue funds are available, which we expect shortly,"
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NEW DELHI: Embattled EdTech company Bi's has apparently mandated all its employees to work from home as it gives up office spaces across the country amid several cash crunch, barring those working at its 300-odd offline tuition centres. The company, which managed to disburse a portion of the pending salaries for over 20,000 employees for the month of February, has given up office spaces as the leases expired, keeping only its Bengaluru-based headquarters, people close to the development told IANS on Monday.
The move to give up offices is part of Byju's India CEO Arjun Mohan's restructuring exercise to save cash as proceeds from the rights issue (around $250-$300 million) remain stuck amid its tussle with select investors.
The CapTable was the first to report the development.
The company has promised to pay the remaining salaries once it is allowed to use the funds from the recently closed rights issue.
"We processed part salaries for everyone for February, late night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly," the company said in its latest letter to employees.