News Update

Byju Raveendran responds to Messi controversy following layoffs, calling it “foolish for people to imagine…”

• ByStartupStory     |    November 14, 2022

The most valuable edtech company in the world, Byju’s, came under fire after it let go of 2,500 employees and revealed that Lionel Messi had been hired as its global brand ambassador. Byju Raveendran and Divya Gokulnath, the company’s founders, have now clarified the action and even talked about the company’s future in an interview with Your Story.
To eliminate duty duplication and reduce redundancies as the company focuses on profitability, Raveendran stated in a memo to staff that the dismissal of around 5% of its workforce was necessary.
In response to the job cuts, Divya Gokulnath commented, “Sometimes what Byju and Divya want is not what BYJU as a company wants.”
Raveendran stated that Messi’s signing would have a positive societal impact.

“The deal with Messi is not a typical sponsorship deal.” It is a partnership to create social impact. It was something that we signed six months ago. “It is foolish for people to imagine that we will pay money for Messi after letting people go,” he stated.
Raveendran added that the business has expanded by 70% during the past year, saying, “We grew by almost 70% in the year, but this is not visible in the financials for a few reasons.” “We just finished our best six months ever, with three times the revenue growth in 2023.”
Gokunath even referred to the business as “pioneers” and said that they treat criticism as “critique.”
Additionally, Raveendran expressed regret and acknowledged that mistakes had been made, adding that complacency at this point was “criminal.”
“There’s no scope for short-term optics.” Just like anyone else when you grow this fast, we’ve made our fair share of mistakes, and we’re sorry about it. “When you’re privileged enough to make such a big impact, it’s criminal to be complacent,” he said.
Additionally, he predicted that in 20 years, there will be many more students learning for free than for money.
“Give us 20 more years, and I can give it in writing; there will be more students who will be learning free from us compared to paying,” Raveendran added, and he intends to continue doing this for another 30 years. “I’m the largest investor in the company, not just a shareholder,” he said.

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