Byju’s delays Rs 45-50 cr payments to Salesforce and other data management tools

Byju's employees lose access to Salesforce, Tableau and other CRM systems

Byju’s employees have lost access to data management tools including Salesforce after the company didn’t clear monthly payments of these platforms, multiple people aware of the matter told Moneycontrol.

Employees of the edtech startup use customer relationship management (CRM) platforms like Leadsquared, Orderhive, and Salesforce, and data visualisation software such as Tableau and Tooljet. On August 31, all employees lost access to Salesforce, Tableau, and Tooljet, the people said, requesting anonymity.

However, access to Salesforce was restored on September 1, employees said.

Byju's has not cleared dues to Salesforce, Tableau, and Tooljet for about two months, a senior executive told Moneycontrol. The total vendor dues are between Rs 45 and Rs 50 crore.

“You generally have to manage payments in case of delays. For example, if a payment is not made for 6 months, in order to continue service, you make a partial payment (for a month or two). But I think they didn’t do that,” the executive told Moneycontrol, requesting anonymity.

“Looks like that has become difficult now with so many vendors stopping services altogether,” he added.

Leadsquared has scaled back its services. Additionally, Orderhive, another CRM system, will suspend access to its services starting from September 1 due to non-payment of dues since December last year, the people added.

“Please note we have not received full payment for the period beginning December. We have made multiple, but unsuccessful attempts and Byju’s is now overdue. We will suspend access beginning 1st September 2023 unless we receive the past due amount,” a pop-up on one of the employees’ Orderhive accounts read when the employee tried logging in.

Moneycontrol has viewed the screenshots of employees not being able to access these platforms.

A Customer Relationship Management (CRM) system typically helps sales staff by centralising customer data, automating tasks, tracking leads, and recording communications. It also supports them in tailoring marketing approaches and simplifying customer segmentation, which can help to improve the sales process. Meanwhile, Tableau and Tooljet help businesses enhance their data visualization and analytical capabilities.

Naturally, for business-to-consumer (B2C) businesses, especially those with a robust sales mechanism, CRM and data visualisation systems are of utmost importance for day-to-day functions.

The sudden discontinuation of these systems has disrupted Byju's' operations, according to employees. This setback is particularly challenging for Byju's, an organisation heavily reliant on sales, as it navigates the current crisis and rebuilds itself.

“In our morning meeting today, our VP asked us to manage without these systems for a few days,” said one sales team lead on August 31, requesting anonymity.

“The management said these problems won’t last for more than a month, but till then, we will have to manage somehow. Apparently, the company is prioritising other things currently, our VP said. It is practically impossible to work without these systems. There was chaos today, everyone was losing their mind as we were asked to use Google Sheets instead of Salesforce today,” the person added.

A spokesperson for Byju’s confirmed the development. Tooljet declined to comment. Detailed queries sent to Salesforce, Tableau and Leadsquared did not elicit an immediate response.

“Byju’s has a high calibre 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.

“We have transitioned from many of the software you have mentioned several quarters back,” the spokesperson added.

Byju’s move to discontinue third-party services and transition to internal systems underscores the startup’s efforts to conserve cash amid a long-pending fund infusion. In July, the company gave up its biggest office space in Bengaluru, while laying off more staff. Byju’s has also reduced spending on marketing over the past six months, as it aims to turn profitable by the next financial year.

Earlier this week, Moneycontrol also exclusively reported the departure of four senior executives including Byju's Chief Business Officer Prathyusha Agarwal and WhiteHat Jr CEO Ananya Tripathi.

Byju's, India’s most-valued startup, has been grappling with challenges both on the domestic and international fronts. In June, the company faced a significant setback when three crucial members of its investor board decided to step down due to disagreements with the founder, Byju Raveendran, primarily regarding operational matters.

Adding to Byju's challenges, its longtime auditor, Deloitte, which had been associated with the company since 2015, also resigned in June. Deloitte cited the delay in releasing the financial results for the fiscal year 2021-22 as the reason for its departure.

Concurrently, Byju's is currently in negotiations with creditors, including Term Loan B lenders and Davidson Kempner. The company is eagerly awaiting an infusion of funds that holds paramount importance in aiding it to navigate an impending liquidity crisis.

To address these hurdles, Byju's has undertaken significant organisational changes. These include a reduction in its workforce by over 2,000 employees throughout the year, with a majority transitioning to contractual roles, and relinquishing its largest office space in Bengaluru.

Byju's has come under scrutiny due to discontent among both students and parents. Moneycontrol previously reported that within the past two years, over 60 percent of Byju's Tuition Centre (BTC) customers have requested refunds.

Nonetheless, Byju's has been actively taking steps to reverse the situation over the last three months. It introduced a board advisory council, appointing industry veterans such as TV Mohandas Pai and Rajnish Kumar as advisors. Furthermore, Byju's recently onboarded Richard Lobo to lead its human resources department, with Lobo expected to assume his role in September.

In March 2022, Byju's secured a massive $800 million in funding, propelling its valuation to over $22 billion. Byju's, started about a decade back by former educator Raveendran, has raised nearly $6 billion in funding throughout its operational history.

(The copy was later updated as access to Salesforce was restored)