Edtech Giant Addresses Misconceptions Regarding Closure Rumors, Asserts Long-term Operational Strategy
BYJU’S, the prominent edtech major, has clarified its operational strategy amidst recent reports suggesting the closure of a significant number of its offline tuition centres. Contrary to speculation, the company has affirmed that approximately 90% of its centres will continue to operate in a hybrid model, with the remaining undergoing strategic restructuring.
In a statement released on Friday (March 22), BYJU’S dismissed reports implying the closure of numerous BYJU’S Tuition Centres (BTCs) as unfounded and misrepresentative of the company’s plans. The edtech giant emphasized that its offline centres are entering their third year of operations, with a vast majority poised to sustain operations in a hybrid format.
Out of the 292 centres, 262 centres are slated to maintain their hybrid model, reflecting BYJU’S commitment to adapting to evolving educational needs while ensuring continued accessibility for students. Meanwhile, the remaining centres will undergo strategic restructuring to align with BYJU’S long-term vision.
BYJU’S also highlighted that a significant portion of its current student base has already enrolled for the upcoming academic year (2024-25), indicating sustained trust and engagement with the platform. The announcement comes amidst recent reports suggesting cost-cutting measures by BYJU’S, including relinquishing office spaces across India and transitioning tuition centres to remote operations.
However, BYJU’S is currently grappling with a series of legal challenges, including allegations of financial impropriety and investor discontent. Despite legal battles and operational adjustments, the company remains focused on enhancing its market position and adapting to dynamic industry landscapes.
Investors have called for an extraordinary general meeting (EGM) to address concerns regarding leadership, while legal proceedings continue to unfold. Notably, BYJU’S has filed its FY22 financial statements after a prolonged delay, revealing an 81% year-on-year surge in net loss, alongside reports of delayed salaries and previous rounds of layoffs.
Amidst ongoing turbulence, BYJU’S shareholders have been issued a notice for an EGM to deliberate on increasing the company’s authorized share capital following a $200 million rights issue, underscoring BYJU’S efforts to fortify its financial position amidst market uncertainties.
As BYJU’S navigates a challenging landscape, its commitment to innovation and adaptation remains central to its long-term growth trajectory.
