BYJU’S overlooks making INR 45-50 Cr payments to Salesforce, other data management tool providers

For approximately two months, BYJU’S has not made vendor payments to Salesforce, Tableau, and Tooljet, totalling between INR 45 and INR 50 Cr.

According to a company spokesperson, the leading provider of educational technology is in the process of switching from third-party services to internal systems.

The struggling startup’s decision to stop using third-party solutions and switch to internal systems is evidence of its cost-cutting efforts.

Because the edtech behemoth allegedly failed to pay for these platforms on a monthly basis, BYJU’S employees are no longer able to access many data management tools, including Salesforce.

Along with data visualization programs like Tableau and Tooljet, the edtech giant uses tools like Leadsquared, Orderhive, and Salesforce. According to sources cited by Moneycontrol on August 31, all staff members lost access to Salesforce, Tableau, and Tooljet.

Since about two months ago, BYJU’S has not paid its outstanding debts to Salesforce, Tableau, and Tooljet, accumulating total vendor payments of between INR 45 Cr and INR 50 Cr. Due to non-payment of dues since December of last year, Orderhive will begin to restrict access to its services on September 1 while Leadsquared has reduced the scope of its services, the people said.

However, access to Salesforce was reestablished earlier today (September 1).

BYJU’S has been replacing third-party software tools, according to a company spokesperson.

“BYJU’S has a high caliber tech team that has been building a robust and cost-efficient tech backbone and progressively transitioning out third-party software tools and platforms. The purpose of building a single platform for all content management, classroom, and CRM solutions is to ensure a secure and seamless transition of information for all stakeholders within and outside the company’s ecosystem,” the spokesperson said.

A significant portion of the software was transitioned out several quarters ago, the spokesperson added.

The startup’s efforts to reduce costs are highlighted by the decision to stop using third-party solutions and switch to internal systems. In addition, BYJU’S terminated hundreds of workers in July while also leaving its largest office space in Bengaluru. In an effort to become profitable in the upcoming fiscal year, the edtech company has also reduced its marketing spending.

Four senior executives left the edtech earlier this week, including WhiteHat Jr. CEO Ananya Tripathi and CBO of BYJU Prathyusha Agarwal.

BYJU’S has long been engaged in conflicts on numerous fronts. When three key board members decided to leave the company in June, it suffered a serious setback. Additionally, Deloitte, its previous auditor, quit in June.

In order to restructure its debt, the edtech giant is currently in talks with its creditors, including Davidson Kempner and the term loan B lenders. With both lenders, a settlement has been approaching.

The edtech behemoth established a board advisory council in the midst of the controversies and enlisted the advice of seasoned professionals from the field like TV Mohandas Pai and Rajnish Kumar. Additionally, BYJU’S recently hired Richard Lobo to head its human resources division.