 "Shahrukh Khan")
As Byju's continues with its cost-cutting measures, the edtech platform is unlikely to renew its endorsement contract with actor Shah Rukh Khan, The Economic Times (ET) reported citing people in the know. The endorsement contract expires in September. The person cited told the newspaper that as the company finds itself in deep financial trouble, Shah Rukh's team is also hesitant to continue the association with the brand.
In 2017, Byju's signed Shah Rukh Khan for an annual payment of around Rs 4 crore. Since then, the Bollywood star has been Byju's most familiar face. However, Byju's and Shah Rukh Khan have found themselves in a similar situation in earlier instances as well.
In April 2023, a consumer disputes redressal commission in Madhya Pradesh imposed a penalty of Rs 50,000 each on Byju's and Shah Rukh Khan, the ET report said. The fine was slapped "for not meeting teaching standards and false ads."
Moreover, the actor has been asked questions about his association with Byju's on social media platforms. In 2021, when Khan's son Aryan was caught in a controversy, Byju's stopped its advertisements featuring the actor.
Hit by a slowdown in the online education market, Byju's continues to cut jobs and raising funds becomes more and more difficult for the company. In a recent announcement, BCCI announced that Byju's was being replaced by the online gaming company Dream11 as the lead sponsor for the Indian cricket team.
In a recent development, representatives from three key investors of Byju's, which included Peak XV Partners (earlier known as Sequoia Capital India), Prosus (earlier Naspers), and Chan Zuckerberg Initiative, resigned from the company's board.
Moreover, Deloitte has also quit the company as its auditor citing that Byju's was unable to produce financial statements for FY22, which Deloitte was supposed to look into.
