Rajnish Kumar and T.V. Mohandas Pai will not stay on BYJU’S advisory panel after their one-year term ends on June 30. Mohandas Pai and Rajnish Kumar’s resignation from BYJU’S Advisory Council decision adds to the challenges faced by the online education company. Kumar, former Chairman of SBI, and Pai, an ace investor, joined BYJU’S last year to help founder Byju Raveendran navigate through board exits and financial issues. They have now informed Raveendran of their decision not to continue.
Both parties agreed not to renew their contracts. A BYJU’S spokesperson confirmed that the decision was mutual.
Advisors Kumar and Pai Conclude Engagement with the Company
Mohandas Pai and Rajnish Kumar, who served as advisors, resigned from BYJU’S Advisory Council. They served the company for a year but have decided not to extend their tenure. They will no longer be part of the advisory council but can provide advice. The company appreciates their contributions and wishes them the best.
Byju’s values the advice Kumar and Pai gave and thanks them for their efforts during challenging times. Last July, they were brought on board to offer guidance to CEO Byju Raveendran.
Byju Raveendran, founder and CEO of Think & Learn Pvt Ltd, said,
“Rajnish Kumar and Mohandas Pai have been incredibly helpful over the past year. Despite some legal issues with foreign investors slowing us down, I’ll be counting on their advice as we move forward with the rebuild, which I’m overseeing personally,”
BYJU’S Clarifies on Advisors’ Departure
BYJU’S has responded to media reports calling Rajnish Kumar and TV Mohandas Pai’s departure a setback. The company stated that such characterizations are exaggerated. It values the advisors’ contributions and appreciates their efforts during challenging times.
In July 2023, following resignations from several board members, including representatives from PeakXV Partners, Chan Zuckerberg Initiative, and Prosus, BYJU’S appointed Rajnish Kumar and TV Mohandas Pai to its advisory council. The council’s role is to provide guidance to the board and CEO Byju Raveendran to strengthen corporate governance.
Industry Veterans Leave BYJU’S Amid Challenges
Rajnish Kumar and TV Mohandas Pai’s decision to leave comes as BYJU’S faces numerous challenges, including delayed salaries, mass layoffs, a debt crisis, mounting losses, and delayed financial reports.
For context, in the fiscal year 2022, BYJU’S reported a significant increase in net loss, which surged by 81% year-over-year to approximately INR 8,245.2 crore (close to $1 billion). Despite this, operating revenues also rose by over 120% to INR 5,014.6 crore during the same period, largely due to the performance of its coaching arm, Aakash.
Challenges Mount as BYJU’S Sees Senior Executives Departures
BYJU’S is facing a wave of departures, including key senior executives like India CEO Arjun Mohan and other C-Suite leaders. Additionally, investors have organized to remove CEO Raveendran and his family from the company, following a significant valuation drop of 99% from $22 billion during the last fundraising round.
To add to the pressure, investors have filed insolvency cases against BYJU’S in the National Company Law Tribunal (NCLT). In response, BYJU’S has introduced a new strategy, BYJU’S 3.0, aimed at reducing costs and heading towards profitability with a leaner structure and fewer employees.
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