Downsizing its Bengaluru presence, Byju's gave up its biggest office space and now works from Prestige Tech Park & IBC Knowledge Park
In the midst of increasing challenges at Byju’s, employees at the edtech giant’s Bengaluru offices are reportedly facing worsening working conditions. As the once-celebrated startup struggles for its existence, the morale of the workforce has suffered due to cost-cutting measures and operational difficulties impacting the workplace.
A mere 15 months ago, the startup held a valuation of $22 billion. However, one of its primary investors has recently reduced Byju’s valuation to less than $3 billion. Notably, Prosus NV, along with two other initial supporters, Peak XV and the Chan Zuckerberg Initiative, have resigned from the edtech company’s board. Additionally, creditors have assumed control of Byju’s Alpha, a U.S. financing entity, due to the non-payment of a $1.2 billion term loan.
This major cash crunch is affecting the company’s internal work conditions, one example is the Bengaluru office. Employee morale at the once-bright edtech startup has taken a hit due to financial difficulties. Cost-cutting measures and operational challenges are impacting the workplace environment, creating growing discontent among staff.
Concerns have been raised about declining hygiene standards, particularly in restrooms where cleanliness issues persist despite reductions in cleaning personnel. Additionally, previously offered amenities such as coffee, tea, breakfast items, and soup are no longer available, with only water remaining accessible.
The team is currently grappling with a severe liquidity crisis. Faced with extensive layoffs and substantial financial losses, the former billionaire founder has liquidated his house to meet salary obligations. However, Raveendran still has viable alternatives. Byju’s has the potential to raise capital by divesting its U.S.-based children’s digital reading platform, Epic!.
On the domestic front, the company’s physical test-prep segment has attracted interest from a wealthy Indian investor. If the unit is sold or taken public, the flagship asset of the contracting empire could potentially fetch a value exceeding the nearly $1 billion initially paid by Byju’s in 2021.
Also read: Byju Raveendran seeks equity-linked investment of $300 Mn from investors amid legal challenges
