SUMMARY
Earlier this year, the rental agreement for the 400,000 square feet property at Prestige Tech Park was terminated, adjusting the deposit to offset rent defaults
Additionally, the company is facing ongoing disputes with several other landlords
BYJU’S, which had been paying a monthly rental of approximately INR 4 Cr for the office space, had entered into a rental agreement with the Prestige Group about 3.5 years ago
In a bid to trim expenses, troubled edtech giant BYJU’S has reportedly vacated a 400,000 square feet property at Prestige Tech Park in Bengaluru.
Earlier this year, the rental agreement for the 400,000 square feet property at Prestige Tech Park was terminated, adjusting the deposit to offset rent defaults, ET reported. Additionally, the company is facing ongoing disputes with several other landlords.
BYJU’S, which had been paying a monthly rental of approximately INR 4 Cr for the office space, had entered into a rental agreement with the Prestige Group about 3.5 years ago.
Meanwhile, 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.
“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, Juggy Marwaha, CEO of Prestige Office Ventures, said.
When rental payments continued to be delayed, they had no alternative but to utilise the security deposit to cover the outstanding dues and formally request BYJU’S to vacate the premises, he added.
Meanwhile, think and Learn, the parent entity of BYJU’S, has reportedly secured a commitment of $300 Mn from investors for its ongoing rights issue, expected to conclude by February end. In January, BYJU’S initiated a rights issue to raise $200 Mn through equity rights, valuing the enterprise between $220-250 Mn.
Over 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.
BYJU’S net loss surged 81% YoY to INR 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 INR 13,668 Cr.
