Beleaguered edtech startup has reportedly vacated its 400,000 sq ft office space at Prestige Tech Park in Bengaluru in a bid to save costs.
The rental agreement was terminated earlier this year, while the deposit on the property was adjusted against rent defaults, as per a report by The Economic Times.
BYJU’s had rented the office space at Prestige Tech Park for around Rs 4 crore per month for about 3.5 years.
Separately, Kalyani Developers has issued a legal notice to BYJU’S for non-payment of ten months of rent for an office space of 500,000 sq ft at Kalyani Tech Park in Bengaluru, the report said.
Meanwhile, BYJU’S has also shelved its deal with football celebrity Lionel Messi, who was roped in as the inaugural global brand ambassador for its social impact arm, Education For All.
The deal, announced in November 2022 between Messi and BYJU’S, was for a period of three years, involving an annual sum estimated between $5 million and $7 million. According to reports, BYJU’S has compensated Messi just for the inaugural year. However, the decision on whether to terminate the contract prematurely or renew it later remains uncertain due to the edtech firm’s liquidity crunch and other significant concerns.
The parent company of BYJU’S, Think and Learn Pvt Ltd, is reported to have secured a $300 million commitment from investors for its ongoing rights issue. This round of funding is expected to close by the end of February with a valuation in the range of $220 million – $250 million—a 99% reduction in its peak valuation of $22 billion.
Edited by Megha Reddy
