Bangalore based Edtech giant Byju’s is cutting down various expenses and reportedly has vacated a 400,000 square feet property at Prestige Tech Park in Bengaluru. Previously, BYJU’S, had been paying a monthly rental of approximately 4 Cr for the office space, had entered into a rental agreement with the Prestige Group about 3.5 years ago.

According to the report of ET Realty, the company has terminated the rental agreement for the 400,000 square feet property at Prestige Tech Park. It has been facing several disputes with other landlords.

On the other hand, Kalyani Developers has sent legal notice against BYJU’S for failing to pay rent for a 500,000 square feet office space located at Kalyani Tech Park in Bengaluru. Currently, the outstanding dues to the builder amount to ten months’ rent, of which BYJU’S has offset seven months’ rent with the deposit.

CEO of Prestige Office Ventures, Juggy Marwaha, quoted, “We are leasing office space and always depend on our occupier’s business to flourish and grow. However, sometimes the headwinds of their own business make it difficult for them to fulfil their rental obligations. In this case, we tried our best to realign rents and give them some relaxation.”

He further added that, when rental payments continued to be delayed, they had no alternative but to utilize the security deposit to cover the outstanding dues and formally request BYJU’S to vacate the premises.

Meanwhile, the parent entity of BYJU’S, think and Learn has reportedly locked a deal of $300 Mn from investors for its ongoing rights issue, which is expected to conclude by February end. During January, BYJU’S initiated a rights issue to raise $200 Mn through equity rights, valuing the enterprise between $220-250 Mn.

Throughout the past two years, BYJU’S has grappled with a myriad of challenges, ranging from uncontrolled losses to business model obstacles, and conflicts with investors, along with legal disputes with creditors and vendors.

Reportedly, BYJU’S net loss surged 81% YoY to 8,245.2 Cr (close to $1 Bn) in FY22 as WhiteHat Jr and other loss-making acquisitions continued to weigh down the bottom line. In FY22, the startup’s total expenses nearly doubled to 13,668 Cr.

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