Edtech

Mohandas Pai and Rajnish Kumar Exit BYJU’S Advisory Council Amid Company’s Strategic Overhaul

• ByStartupStory     |    May 20, 2024

Mohandas Pai, former CFO of Infosys, and Rajnish Kumar, ex-Chairperson of the State Bank of India, will be departing from BYJU’S advisory council, the company announced. Their exit comes as the contracts they entered into last July will conclude by the end of June this year, with no renewal on the horizon.

This decision marks the end of a significant chapter for BYJU’S, which had brought in the duo to bolster its governance and strategic decision-making capacities after facing a series of challenges, including the departure of its previous auditor Deloitte and the resignation of three key board members.

“Our engagement was based on a fixed-term agreement, and after careful consideration with the founders, we agreed not to extend our tenure,” said Kumar and Pai in a joint statement. While they will no longer be formally associated with BYJU’S, they expressed their willingness to offer advice to the company if needed in the future.

The departure of these advisory council members comes at a tumultuous time for the Bengaluru-based edtech giant, which continues to navigate significant operational and financial challenges. Byju Raveendran, the company’s founder and CEO, acknowledged the crucial role played by Kumar and Pai, stating, “Their advice has been invaluable and will continue to influence our strategic decisions as we focus on a comprehensive rebuild of the company.”

Earlier this month, BYJU’S unveiled a new sales strategy aimed at transforming its sales force into counselors rather than mere salespeople. This change, coupled with a reduction in product prices at the start of the academic year, signifies a strategic shift designed to revive the company’s fortunes.

The company has also undergone a significant restructuring, consolidating its operations into three focused divisions: the learning app, online classes and tuition centers, and test prep. This move is part of a broader effort to streamline operations and stabilize finances amidst ongoing litigation and disputes with key investors such as Prosus, General Atlantic, Chan Zuckerberg Initiative, and Peak XV.

These investors recently sought to annul a $200-million rights issue from January, taking their grievances to the National Company Law Tribunal. BYJU’S also faces legal challenges in the Karnataka High Court, further complicating its path to recovery.

As the company reorganizes and adapts its strategies, the industry will be watching closely to see if these changes can steer the once-celebrated startup back to stability and growth in the highly competitive edtech landscape.

Follow Startup Story