BYJU'S faces another turn in its saga as two high-profile advisers, investor TV Mohandas Pai and former SBI Chairman Rajnish Kumar, are set to resign from the advisory board of the edtech unicorn next month.
Their exit from the advisory panel comes into effect on June 30, which will also bring an end to their one-year tenure with the company. A BYJU'S spokesperson informed that the decision not to extend the contractual agreement between the edtech company and Kumar and Pai was through mutual consent.
In a joint statement, Kumar and Pai said that their stint with the edtech firm was always for a year on a fixed-term basis. They expressed their readiness to offer advice despite the formal conclusion of their engagement and wished the founders and the company success in their future endeavors.
BYJU’S co-founder and CEO Byju Raveendran acknowledged the valuable support provided by Kumar and Pai over the past year. He mentioned their guidance amidst challenges faced, especially amidst the ongoing litigations by some foreign investors, which have disrupted plans but asserted their continued contributions toward the rebuild of the company.
Responding to the media reports that termed their leaving as a setback, BYJU`S issued a statement trashing such characterizations as exaggerated, pointing to continued value in the engagement with advisors and their significant efforts toward steering the company through turbulent times.
In July 2023, Rajnish Kumar and TV Mohandas Pai were appointed to the advisory council following the resignation of several members of the board members, for the betterment of corporate governance. Two months later, their stint at the EdTech firm would come to an end, coinciding with the company's continued headwinds.
BYJU’S faces a multitude of issues, including delayed salaries, mass layoffs, a debt crisis, mounting losses, and delayed financials. Despite a surge in operating revenues in FY22, the company reported a substantial net loss.
These recent departures coincide with the exit of key senior executives and investor attempts to oust Raveendran and his family from the company. Investors have also initiated insolvency cases against BYJU’S.
In response to these challenges, BYJU’S has devised a new strategy, BYJU’S 3.0, aimed at restructuring for cost reduction and a path to profitability without compromising its core objectives.
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