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Byju's Vacates 400,000 Sq Ft Bengaluru Office Space To Reduce Costs: Report

The company terminated the rental agreements for the property at Prestige Tech Park earlier this year.

Byju's Vacates 400,000 Sq Ft Bengaluru Office Space To Reduce Costs: Report
Byju Raveendran, chief executive officer, Byjus
POSTED ON February 20, 2024 1:00 PM

Two months after news reports of Byju Raveendran mortgaging his house to meet the company's expenses and pay employee salaries, the edtech Byju's has decided to vacate a 400,000 square feet property at Prestige Tech Park in Bengaluru.

According to the ET report, the company terminated the rental agreements for the property at Prestige Tech Park, earlier this year. People aware of the development further added that the edtech also has ongoing disputes with its other landlords.

Think and Learn which owns the byju's was paying Rs 4 crore per month as rent for the office space. The rental agreement was signed by the edtech 3.5 years ago with the Prestige group. In another development, Kalyani Developers has sent a legal notice to the edtech for defaulting on the rental payments for the property that is being used by the company. The report added that Byju's has defaulted on 10 months rents of which seven months have been adjusted from the deposit. 

“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 fulfill their rental obligations. In this case, we tried our best to realign rents and give them some relaxation, Juggy Marwaha, CEO of Prestige Office Ventures, said.

"When rental payments still didn't come on time, we had no choice but to adjust the security deposit and request that they release the space back to us, which we settled amicably," Marwaha said.

Meanwhile, major shareholders of the company have proposed to remove the founder, voting on which is to be held on Friday. Presently, the board consists of three people including Byju Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran who have a total of 26 per cent stake in the company.

Investors have been consistently raising concerns about the governance, financial management, and compliance issues in the company. Major shareholders such as General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg have also written a letter to the company expressing the need for a board change. 

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