Ace banker Rajnish Kumar and venture capitalist TV Mohandas Pai have mutually decided not to renew the contractual agreement with Byju Raveendran-led ed-tech startup BYJU's, which was scheduled to end on June 30, 2024.
Parent company Think & Learn Private Limited (TLPL) said the two advisory board members — Rajnish Kumar and Mohandas Pai — have "mutually" decided not to renew the contractual agreement. These two joined the ed-tech firm's council in July 2023.
“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.
BYJU's, however, clarified it as a routine move, not as a "setback" as some media platforms reported. "TLPL values the engagement with the advisors and greatly appreciates all their efforts in navigating the company through turbulent times," the company adds.
Byju Raveendran, Founder & CEO, Think & Learn, says Rajnish Kumar and Mohandas Pai 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,” he said.
Last month, BYJU's CEO Arjun Mohan also left the company seven months after joining in September 2023. To lead the India unit, Byju Raveendran has decided to spearhead the daily operations at the company. The company earlier said recognising the need for "strong leadership" during a "challenging hour", Raveendran would now be deeply involved in the company's day-to-day functioning.
The top-level exits and Raveendran's decision to lead the operations of BYJU's India unit seem to be aimed at re-energising the company badly hit by recent episodes. "BYJU'S aims to chart a fresh chapter of growth with Raveendran at the helm," the company said last month, adding that it was on track to scale its new suite of AI-first products.
BYJU's has also received approval to increase its authorised share capital, which is expected to pave the way for Think & Learn to tackle the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments. Notwithstanding the approval of the voting process by the third-party scrutiniser, the tribunal court National Company Law Tribunal (NCLT) had restricted the use of these funds by the ed-tech company. The NCLT, in its previous order, on a petition filed by four foreign shareholders, had instructed the company to hold the funds received from the rights issue in an escrow account for now. The next hearing on the matter is scheduled for April 23.
