Byju’s: Following a conversation with the founders, former SBI chairman Rajnish Kumar and former Infosys CFO Mohandas Pai have decided to step down from their positions on the advisory council of Think & Learn, the edtech company anByju’snounced on Sunday.
Founder’s Accusations Against Foreign Investors
The founder of Think & Learn, which is the owner of the Byju‘s brand, Raveendran Byju, accused a few foreign investors of holding up the company’s comeback by reorganizing the board, delaying financial results, and resolving the liquidity crisis by opposing the USD 200 million rights issue. In order to assist and counsel the edtech company in resolving its crisis and enhancing governance, Think & Learn established the advisory council in July 2023.
Conclusion of Advisory Council Engagement
“Our engagement with the company as advisors was always on a fixed-term basis for a year. Based on our discussions with the founders, it was mutually decided that the tenure of the advisory council should not be extended,” Kumar and Pai said in a joint statement.
“Though the formal engagement concludes, the founders and the company can always approach us for any advice. We wish the founders and the company the very best for the future,” they added. The contract is expected to expire on June 30, 2024.
Byju’s Gratitude to Advisors
Byju’s stated that it cherishes the advisers’ involvement and is very grateful for all of their efforts in helping the company get through difficult times. “Rajnish Kumar and Mohandas Pai have provided invaluable support in the past year. The ongoing litigations by a few foreign investors have delayed our plans but their advice will be relied upon in the ongoing rebuild which I am personally leading,” Raveendran said.
Byju’s Valuation Drops Significantly
Blackrock, a firm investor, reduced Byju’s valuation from $22 billion in 2022, when it was still one of the most promising startups, to just $1 billion. Sequoia Capital, an additional investor that is now Peak XV Partners, has wiped off its investment in the interim.
After Vivian Wu of the Chan Zuckerberg Initiative, GV Ravishankar of Peak XV Partners, and Russell Dreisenstock of Prosus resigned from Byju’s board over issues with corporate governance, the company’s problems got worse. The statutory auditor for Byju, Deloitte, also resigned as a result of the company’s failure to submit the required information on time.
Byju’s Faces Layoffs and CEO Resignation
Byju’s paid overdue salaries and laid off thousands of workers amid the mayhem. Arjun Mohan, its chief executive, also resigned. The National Company Law Tribunal is currently considering many insolvency cases involving Byju’s. Byju’s $200 million rights issue was approved by shareholders last month, but the company cannot utilize the money until the judicial proceedings are over.
