“Byju’s grew considerably since our first investment in 2018 but, over time, its reporting and governance structures did not evolve sufficiently for a company of that scale,” Prosus said. Sources, however, said the company which currently holds about 9. 6% stake in Byju’s, has no plans to exit the startup. “We have updated our shareholders about definitive steps taken to im prove corporate governance and financial reporting,” a spokesperson at Byju’s said.
Interestingly, the statement by Prosus comes a day after the steering committee of the ad hoc term lenders, who collectively own more than 85% of Byju’s $1. 2-billion term loan, said that it will collaborate with the star tup to rework the loan terms by August 3. The startup’s tussle with lenders which had reached the courtroom was a cause for concern for its stakeholders and a resolution of the issue should spell some relief for them.
Byju’s has vacated certain office spaces across Bengaluru and Delhi-NCR to keep its costs in check.
The company, it is learnt, has given up office space in Bengaluru’s Kalyani Tech Park and parts of its spaces in Prestige Tech Park. It has vacated some of its office spaces in Gurgaon. Byju’s did not share any details on the office spaces it has vacated. “Expansion and reduction in office space is based on changes in working polices and business priorities,” Byju’s spokesperson said.