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- Byju’s Crisis; TLPL Advisory Board Member Mohandas Pai, Rajnish Kumar To Quit
New Delhi50 minutes ago
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Advisory board members of Byju’s parent company Think and Learn Private Limited (TLPL) Rajneesh Kumar and Mohandas Pai will not renew their contractual agreements. The contracts of both expire on June 30, 2024. Byju’s issued a statement saying that Rajneesh Kumar and Mohandas Pai have decided to leave the Advisory Council after discussing with the founders of TLPL.
This decision has come at a time when cash-strapped edtech company Byju’s is fighting a legal battle with its stakeholders in the National Company Law Tribunal. Rajneesh Kumar is the former chairman of SBI and Mohandas Pai is the former financial officer of Infosys.
The company took the decision with mutual consent
Kumar and Pai said in a joint statement, ‘Our engagement with the company as advisors was always on a fixed term basis for one year. Based on our discussions with the Founders, it was mutually decided that the tenure of the Advisory Council should not be extended.
Although the formal engagement is over, the founders and the company can always contact us for any advice. We wish the founders and the company all the best for the future.
In 2011, Raveendran started his edtech company named Think and Learn.
Ravindran said- Kumar and Pai provided invaluable help last year.
The company issued a statement saying it values the engagement with its advisors and appreciates all their efforts in leading the company through turbulent times. At the same time, the company’s founder and CEO Byju Raveendran said, ‘Rajneesh Kumar and Mohandas Pai have provided invaluable assistance last year.
Our plans have been delayed due to ongoing lawsuits from some foreign investors, but their advice will be relied upon in the rebuild, which I am personally leading.
Byju’s is firing employees over the phone
According to Moneycontrol report, Byju’s has fired more than 10 thousand employees in the last 12 months. The financial condition of Byju’s is so bad that neither the company is reviewing the work of any employees nor is giving them a chance to serve the notice period.
6 big things that happened with Byju’s in the past
- Byjus shareholders had voted on February 23 to remove Raveendran from the post of CEO and also to remove his wife Divya and brother Riju.
- On February 24, Byju Raveendran said, ‘I am writing this letter to you as the CEO of our company. Whatever you may have read in the media is wrong. I will remain the CEO of the company, the management and board will also remain the same.
- In the month of December, Byju Raveendran had mortgaged his house as well as the houses of his family members to pay salaries to the employees.
- The Board of Control for Cricket in India initiated insolvency proceedings against Byju’s. Byju’s is accused of defaulting in payment of ₹158 crore.
- ED sends notice in FEMA violation case worth over Rs 9,000 crore. FEMA was formed in 1999 regarding foreign currency flow.
- The property owner threw out the employees of Gurugram office for not paying rent. Their laptops were confiscated.
Byjus’ loss increases to Rs 8,245 crore in 2022
Byju’s has suffered a loss of ₹8,245 crore in FY 2022. The deficit in FY 2021 was Rs 4,564 crore. That means the company’s loss has almost doubled. The total revenue of the company during this period was ₹ 5,298 crore. Revenue in 2021 was Rs 2,428 crore. That means there has been a 118% jump in revenue.
Byju’s parent company Think and Learn has filed its audited financial report with the Registrar of Companies. Almost half of the losses (about Rs 3,800 crore) are due to companies like WhiteHat Jr and Osmo. These are two major acquisitions made by the company.
