Byju’s CEO Mohan leaves as crisis swells, business shrinks
Byju’s India chief executive Arjun Mohan has stepped down seven months after taking office, returning the reins to founder Byju Raveendran, as the edtech company lurches from one crisis to another.
Byju’s had brought in Mohan in September to cut costs and restructure its India operations, but the business has shrunk considerably since then, according to two people with knowledge of the developments at the company.
The online tutor had “one of its worst seasons” in the January-March quarter, when most sales are booked, one of them said.
Also, “the company’s outstanding debt has mounted to more than $200 million in India and around $200-250 million in the US. This includes the $40 million it is supposed to pay the bondholders every quarter,” the second person said. Both of them spoke on condition of anonymity as the company hasn’t announced its financials for FY23 yet.
Byju’s has disputed the bondholders’ claims after they accelerated the payment last year, and is embroiled in a legal tussle with them. The company, once valued at over $22 billion, has been unable to access the $200 million raised from its recent rights issue following a court order, even as dues owed to employees, debtors and vendors have increased.
An executive close to Raveendran disputed the debt figfarmer ures, saying the outstanding amount stood at $100 million for India and not more than $50 million in the US. “Most of the liabilities will be met by the recent fundraise through the rights issue,” this executive said, adding, “The performance in FY24 has been flattish.”
“The speculated numbers quoted in your query about our India and US liabilities are grossly inaccurate,” a spokesperson for Byju’s said.
Mohan, who previously was CEO at rival edtech company UpGrad India, and had served as Byju’s chief business officer in an earlier stint, will transition into an external advisory role, Byju’s said in a statement on Monday.
Byju’s also announced plans to restructure its operations and consolidate its businesses into three divisions—online classes and tuition centres, the learning app, and the test prep platform—to optimize costs.
Raveendran, who oversaw the firm’s fundraising efforts, will now oversee daily operations. With Mohan on his way out, Raveendran will also lead the India business, the company said.
Almost all of Byju’s employees now work remotely, and the company’s sales, both at the parent level and at Aakash, the crown jewel Byju’s acquired in 2021 for nearly $1 billion, have taken a hit, the second person quoted earlier said.
“Mohan was not a KMP (key managerial person) and was leading mostly operations for the company, with the HR and