Mohandas Pai, former CFO and Board Member of Infosys, and Rajnish Kumar, former Chairperson of State Bank of India—will not renew their contract as advisory board members at BYJU’S. Their tenure is scheduled to end in June.
The edtech firm—which appointed the duo to its advisory council in July last year following Deloitte’s departure as its auditor and the resignation of three prominent board members—said it was 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 development was first reported by Mint.
The inclusion of the two finance and governance leaders in the advisory council was aimed at strengthening BYJU’S’ financial governance mechanisms and driving growth and strategic decision-making.
However, the Bengaluru-based company continues to face multiple battles as it strives for a revival amidst mounting challenges.
“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,” said Byju Raveendran, Founder and CEO of BYJU’S.
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Earlier this month, the troubled edtech firm introduced a new sales strategy where salespeople will be tasked with counselling rather than selling. Moreover, BYJU’S sales executives will have increased flexibility and greater earning opportunities. The company has also reduced its product prices around the start of the academic year.
These developments follow the exit of BYJU’S India CEO Arjun Mohan, with Raveendran taking “a more hands-on approach in spearheading the daily operations” of the edtech company.
The beleaguered edtech firm has announced a reorganisation to streamline operations. It is consolidating its businesses into three focused divisions—the learning app, online classes and tuition centres, and test prep.
Besides a severe liquidity crunch, BYJU’S is locked in a tussle with a clutch of prominent investors, including Prosus, General Atlantic, Chan Zuckerberg Initiative, and Peak XV, which have sought to void the $200-million rights issue initiated in January by appealing to the National Company Law Tribunal.
BYJU’S is also engaged in a legal dispute with some of its investors in the Karnataka High Court.
Edited by Kanishk Singh
