CEO of Byju’s India Arjun Mohan to Steps Down Amid Financial Challenges
Amid mounting financial struggles, Arjun Mohan, CEO of Byju’s India, has tendered his resignation just seven months into his tenure. Founder Byju Raveendran will resume leadership amidst efforts to address outstanding debt, salary dues for employees, and payments to vendors. Mohan will transition to an external advisory role within the organization.
With Mohan’s departure, Byju’s aims to streamline operations by consolidating into three divisions: the learning app, online classes and tuition centers, and test preparation. Raveendran, previously focused on fundraising and expansion, will now oversee day-to-day operations.
Byju’s recent financial woes escalated when shareholders, including Prosus NV, General Atlantic, Sofina, and Peak XV Partners, supported by Tiger Global and Owl Ventures, raised concerns about the company’s $200 million rights issue. This issue, priced at a significant discount to the company’s peak valuation, prompted further scrutiny of financial management, compliance, and governance issues.
The inability to access the raised capital has led to delayed salary payments and layoffs of over 500 employees. Approximately 1,500 employees have departed amidst escalating concerns about the company’s financial viability. Reports indicate that Byju’s has vacated offices nationwide, except for its headquarters at IBC Knowledge Park in Bengaluru, in a bid to reduce costs.
The decision comes after an extensive operational review and cost optimization initiative led by Mohan during his tenure, according to a statement released by the company on Monday.
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