Date:
April 15, 2024
Byju’s CEO, Arjun Mohan, resigned after investors unanimously ousted him.
The founder of India’s biggest EdTech platform, Byju Raveendran, is returning after four years. After the investors ousted the company's existing CEO, Arjun Mohan, and reduced his involvement to external advisory to the board, Raveendran will take on the company's day-to-day operations after nearly four years. The name Byju has resurfaced in global headlines after his impact faded as he stepped down from his role in 2020.
This shift has come amid an ongoing crisis at the company, which led to its steep downfall from a valuation of $22 Billion to 1$ billion at present. The company that became one of the biggest Indian Unicorns lost its status before restructuring operations and cutting costs. Byju’s brought controversy for aggressive and unethical marketing practices to parents who could not afford their service offerings. However, the company’s support to students remained undervalued in showing improvement in their children’s scores. This technique was concluded as manipulation by the masses, leading to an absurd rejection by consumers.
The company's vision began within the eyes of Byju Raveendran. Mohan replaced Mrinal Mohit last year as the company's acting CEO. Both Mrinal and Mohan were Byju’s former students during his Common Admission Test coaching period. Bringing him back can help the company regain its impact and reputation. Byju will be housed under Think & Learn.
The investors' choice to bring Byju back shows that their interest has shifted from extracting profits and increasing valuation to adding value back into the business and nurturing sustainable growth. While the company was falling down, the Indian parents shifted to other educational platforms and apps that showed promise.
“By focusing on our core strengths with three specialized business units, we will unlock new growth opportunities while continuing to focus on profitability. Arjun has done an outstanding job steering Byju’s through a challenging period. We are grateful for his leadership and look forward to his continued contributions as a strategic advisor,” Raveendran, the refreshed CEO at Byju’s, said while sharing his plans for Byju’s 3.0 business plan.
Arjun was ousted in the Extraordinary General Meeting (EGM) conducted in February by the key investors. The decision of the EGM is being challenged in the Karnataka High Court and the matter is under an interim stay till further notice.
