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Think & Learn Private Limited (TLPL) and the two advisory board members — Rajnish Kumar and Mohandas Pai — have mutually decided not to renew the contractual agreement scheduled to end on June 30, 2024.
“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. 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,” Kumar and Pai said in a joint statement.
The company said that characterising a routine move as "a setback" is exaggerated and attention-seeking. TLPL said it values the engagement with the advisors and greatly appreciates all their efforts in navigating the company through turbulent 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,” Byju Raveendran, founder and chief executive officer, Think & Learn, said.
In June 2023, Byju's auditor Deloitte Haskins & Sells resigned from its role as the company was delaying filing financial results. Following the auditor's resignation, the representatives of the firm's top three investors — Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative — also resigned.
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Lifting the veil on what prompted the resignation of its director from Byju’s board, Prosus, one of the earliest and largest investors in the edtech company, later said that the Indian firm’s executive leadership “regularly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters” despite repeated efforts.
Later, Byju's appointed BDO as its statutory auditor for five years. It also formed an advisory council, including Rajnish Kumar, former State Bank of India chief and current chairman of BharatPe, and Mohandas Pai, former chief financial officer of Infosys.
Kumar and Pai have decided not to renew the contractual agreement with Byju’s at a time when the company is facing multiple challenges, including a cash crunch, delays in financial reporting, and legal disputes with lenders and investors.
Just over six months after taking over the role, Byju’s India chief executive officer Arjun Mohan recently quit his position in the firm, which is now restructuring its business into three divisions with founder Byju Raveendran handling the firm’s day-to-day operations. The firm was consolidating its businesses into three focused divisions: online learning app business, online classes and tuition centres, and test preparation. Each division will have a separate head. The edtech major recently laid off about 500 employees.
Byju’s has given up all its regional sales offices across India, keeping only its headquarters at IBC Knowledge Park in Bengaluru. The offices that have been given up could be well over 20 across Delhi, Gurugram, Mumbai, Pune, Hyderabad, Chennai, and more.
Byju’s is also grappling with another setback as it faces delays in paying salaries to employees. The delay stems from funds raised through a recent rights issue, which have been locked in a “separate account” due to the ongoing dispute with investors.
Byju’s and its investors are fighting at the National Company Law Tribunal (NCLT) over the company’s rights issue of $200 million in a petition alleging mismanagement.
The four investors, Prosus, General Atlantic, Sofina, and Peak XV Partners (formerly Sequoia India & Southeast Asia), had sought a stay on the rights issue at less than 99 per cent enterprise valuation compared to Byju’s peak valuation of $22 billion.
At its peak in 2022, Byju’s had about 50,000 employees, which included the edtech firm’s various subsidiaries. It has conducted many layoff rounds as part of the restructuring exercise started by the Bengaluru-based firm. Byju’s now has about 12,000 employees.
