Byju's Buys 3000 sq ft Office Space in Mumbai
Indian edtech platform, Byju’s is actively expanding its office footprint in the nation’s financial capital which can be clearly seen from its latest acquisition of about 3000 sq ft in Mumbai.
The edtech platform’s office expansion strategy, according to buzz on the streets, has been boosted by its recent $1.2 billion debt fund-raise. The funds are said to be used for future acquisitions and working capital as the company prepares for a possible public offering next year. It received $1.5 billion in June, valued at $16.5 billion, from UBS Group, Abu Dhabi sovereign fund ADQ, and Blackstone Group, among others.
Byju's has been on a buying spree, acquiring nine companies for a total of $2.5 billion this year. Edtech enterprises have leased large office space in 2021, both traditional and flexible workspace, with a multi-city approach, after rapidly hiring and raising financing.
"Office space demand has remained concentrated in Bangalore, Mumbai, and the National Capital Region (NCR). The pandemic-led growth in vacancy levels has been arrested as more and more companies return to the office”, says Abhishek Kiran Gupta, CEO, CRE Matrix and IndexTap
The Glacis Tower building in Mumbai's Khar houses both office units.
The leasing agreement stipulates a 10 percent increase in rentals every two years until October 2026, after which the rent will rise by roughly three lakh every month until October 2023.
Byju's has rented a 5,701-square-foot space in Mumbai's suburban Andheri for $13.09 lakh per month for five years.
Byju's leased a 400,000-square-foot office property on Bengaluru's Outer Ring Road from developer Prestige Group earlier this year, which can accommodate around 4,000 people.
The edtech unicorn's deal is another sign that the decline in COVID-19 cases and advancements in immunizations may encourage more businesses to return to traditional offices.
"Office space demand has remained concentrated in Bangalore, Mumbai, and the National Capital Region (NCR). The pandemic-led growth in vacancy levels has been arrested as more and more companies return to the office”, says Abhishek Kiran Gupta, CEO, CRE Matrix and IndexTap.