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Organizational restructuring, building an accountability framework, and assessing the need for professionals in the company, will be some of the priorities at the crisis-hit edtech major Byju’s, according to members of its newly constituted Advisory Council (AC).
Former State Bank of India chief and current chairman of BharatPe Rajnish Kumar and former chief financial officer (CFO) of Infosys Mohandas Pai have joined Byju’s BAC, the company said on Thursday.
“Our immediate priorities would be having an accountability framework; clarity of functions and roles, and assessing the need for professionals in the organisation. A critical analysis of the situation and examining the scope for organisation structuring will also be a priority. These are crucial for enhancing governance,” Kumar told Business Standard.
This council will play a pivotal role in advising and mentoring BYJU'S Board and its CEO, Byju Raveendran, on crucial matters that shape the company's future, said the company in a statement.
The firm has also appointed upGrad's former chief Arjun Mohan as the chief executive officer (CEO) for its international business, according to media reports. Byju's declined to comment on the development.
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Kumar currently chairs the board of fintech major BharatPe, while Pai was among Byju’s early investors via Aarin Capital but has since divested most of his stake in the company.
The advisory panel, Kumar says, would also monitor the implementation of suggestions made.
“Some steps could be implemented in a short term. We aim to see that there is a deliverable plan and the company is not found wanting on issues like governance,” he said. The beneficial outcomes of the council’s suggestions are expected to be seen within 6-12 months.
The firm’s CEO Byju Raveendran, during an extraordinary general meeting (EGM) on July 4, told shareholders that the company would constitute a board advisory council (BAC) to provide strategic advice to the CEO on matters related to the governance structure.
“The promoters are committed. There is a strong business case for the company to exist. It needs clear guidance to face and effectively get over problems and deliver sustainable growth,” Kumar said, adding, “Success of start-up and fintechs are important for India’s growth.”
T V Mohandas Pai in a statement said, "Byju and Divya are amongst the most impressive entrepreneurs I have worked with from the startup ecosystem. Since our first contact more than a decade ago, they have built the largest edtech company globally and amongst the largest startups in India.”
He also added that as part of the Advisory Council, “I look forward to advising the leadership in evolving the systems of governance and financial reporting, as well as to grow an organisational structure that can serve as a resilient foundation for the future of the company."
Byju’s has recently found itself in hot water after several issues have surfaced at the world’s most valuable edtech firm.
Amid mounting tension with its lenders, layoffs, and accounting irregularities coming to the fore, the firm’s statutory auditor, Deloitte Haskins & Sells, resigned last month, saying that the edtech major was delaying filing financial statements. Three key board members – GV Ravishankar, MD of early-backer Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus, and Chan Zuckerberg's Vivian Wu – had also reportedly resigned at the same time.
According to management at the company, the timeline for the completion of Byju’s FY22 audit is the end of September, while the FY23 audit is expected to be concluded by the end of December, Business Standard had earlier reported.
Meanwhile, Ajay Goel, Byju’s chief financial officer, last week revealed that audits of the company’s subsidiaries such as Aakash, WhiteHat Jr, and Think & Learn were already underway. Byju’s also recently announced IPO (initial public offering) plans for Aakash Educational Services by mid-next year.
In April, the company faced searches by the Enforcement Directorate (ED) at its three premises in Bengaluru.
