The edtech giant Byju's continues to battle a cash crisis, facing persistent challenges from office closures to a widespread salary predicament. Adding to the strife, Byju Raveendran-led company has been dealt another significant blow. The CEO of Byju's India, Arjun Mohan, bid farewell to the company, resigning within a year of his tenure.
Resignation in just 7 months
Arjun Mohan's departure is considered a major setback for Byju's, a company already ensnared in several crises. Mohan took the reins at Byju's India just seven months ago. The edtech firm shared this news in a statement issued on Monday, April 15th, informing that following the CEO's resignation, the company's founder Byju Raveendran is set to resume his operational responsibilities.
Economic crisis, layoffs, and now the CEO's exit
Following his resignation, Arjun Mohan will continue to serve Byju's in the capacity of an external advisor. The highlight of the company's predicaments is the enduring financial crisis it's grappling with. Amid the salary crisis, the company has also experienced significant layoffs. Moreover, legal battles from some investors have emerged. Byju's had recently raised $200 million through a rights issue but is facing challenges in its deployment.
Four of Byju's investors — Prosus, General Atlantic, Sofina, and CPPIB — petitioned against the rights issue in the National Company Law Tribunal (NCLT), arguing it would alter the company's shareholding pattern. Amid these woes, one high-profile exit after another seems to be the trend for the company.
Founder says, 'This is the beginning of Byju's 3.0...'
Byju's founder, Raveendran, appreciated Arjun Mohan for his excellent work in navigating Byju's through challenging times, stating his readiness for Mohan's contribution as a strategic advisor. According to Raveendran, this marks the beginning of Byju's 3.0. In a statement, he indicated that he would once again lead the company's daily operations in this new phase.
