Former State Bank of India chief Rajnish Kumar and Manipal Global Education chairman Mohandas Pai will not renew their contracts with Byju’s advisory council, further adding to the financial woes of the edtech company.
Both Kumar and Pai’s contracts will end on June 30. They had joined the advisory council after investors Peak XV Partners, Prosus, and the Chan Zuckerberg Initiative left Byju’s board last year.
According to sources, the decision to not extend their tenure was mutual. Kumar and Pai stated, “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.”
An insider mentioned that with many disputes currently in court, there wasn’t much for the council to discuss. The advisory council, initially formed for a one-year term, will now dissolve.
Currently, the Byju’s board consists only of founding members Byju Raveendran, Divya Gokulnath, and Riju Ravindran. This latest departure follows the resignation of Byju’s India chief executive Arjun Mohan last month, with founder Raveendran taking over daily operations.
Raveendran acknowledged the contributions of Kumar and Pai over the past year, citing ongoing litigations by foreign investors as a delay in their plans. He emphasized that their advice will continue to be valuable in the company’s ongoing rebuild, which he is personally leading.
Byju’s is still entangled in legal battles with investors in the Karnataka High Court and the National Company Law Tribunal over issues such as a $200 million rights issue at a 99% discount from the company’s peak valuation of $22 billion, and Raveendran’s leadership at Byju’s parent company, Think & Learn.
Since assuming control of India operations, Raveendran has reduced course prices and discussed revamping sales processes. However, the company remains cash-strapped, and Raveendran has been borrowing money to pay pending staff salaries.