20th May 2024 – Byju’s, a leading edtech firm, faces continued challenges as prominent investors TV Mohandas Pai and ex-SBI Chairman Rajnish Kumar announce their departure from the company’s advisory panel next month. Their year-long tenure will conclude on June 30, with no plans for renewal, as mutually agreed upon by both parties. Kumar and Pai clarified that their engagement was always on a fixed-term basis and wished the company well for the future.
Byju’s CEO Byju Raveendran expressed gratitude for their support amidst ongoing legal battles with foreign investors. The company dismissed media reports labeling the departure as a setback and appreciated the advisors’ efforts during turbulent times.
Despite the appointment of Kumar and Pai in July 2023 to enhance corporate governance, their departure comes amid various challenges faced by Byju’s, including delayed salaries, layoffs, financial losses, and executive exits. The company reported a significant increase in net loss for FY22, despite a rise in operating revenues, primarily attributed to its coaching arm, Aakash.
The exits coincide with the departure of key senior executives and investor dissatisfaction, culminating in an extraordinary general meeting seeking leadership change. Insolvency cases have been filed against Byju’s in the National Company Law Tribunal.
In response, Byju’s has devised a new strategy, Byju’s 3.0, emphasizing a lean organizational structure and cost reduction to achieve profitability. This strategic shift aims to navigate the company through its current challenges and secure a stable path forward in the competitive edtech landscape.
Source:Link
