Raveendran takes over daily operations at Byju’s, India CEO Arjun Mohan exits

Over the past four years, Raveendran had focused primarily on strategic aspects such as raising capital and driving global expansion, it said. “However, recognizing the need for strong leadership during this challenging hour, he will now be deeply involved in the company’s day-to-day functioning, leveraging his expertise to steer Byju’s towards its next phase of growth and innovation,” the company said on Monday.

Byju’s also decided to streamline its operations and position the company “for long-term success”. As part of this strategic shift, Byju’s is consolidating its businesses into three focused divisions – The Learning App, Online Classes & Tuition Centres and Test-prep. “This new structure will enable each vertical to be nimbler, cost-efficient, and better equipped to capitalize on market opportunities while leveraging the power of the BYJU’S brand and ecosystem. Each of these units will have separate leaders who will independently run the businesses sustainably to ensure profitability,” the company said.
The changes follow an extensive seven-month operational review and cost optimization exercise led by outgoing Byju’s India CEO Arjun Mohan.

“This reorganisation marks the start of BYJU’S 3.0, a leaner and more agile organization ready to quickly adapt to evolving market dynamics, especially in the realm of hyper-personalized education,” said Byju Raveendran, Founder and Group CEO.

At an extraordinary general meeting (EGM) in February, a group of investors passed resolutions for the removal of Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran from the company’s leadership. The validity of the resolutions is now before the Karnataka High Court. Despite laying off thousands of employees and making massive expenditure cuts over the past year, Byju’s valuation has been in free fall, and the company has defaulted on loans taken from US lenders.

“By focusing on our core strengths with three specialized business units, we will unlock new growth opportunities while continuing to focus on profitability.”

Further, Byju’s on Monday said the voting for the proposal for an increase in authorized share capital put forth in the form of a postal ballot and the extraordinary general meeting (EGM) held on March 29, has been approved by a majority 55 per cent of the total votes polled.

While the $200 million rights issue provides Byju’s with the necessary financial resources, the company is currently unable to utilise the proceeds. A National Company Law Tribunal (NCLT) interim order, on a petition filed by four foreign shareholders, instructed the company to hold the funds received from the rights issue in an escrow account for now. The next hearing on the matter is scheduled for April 23.

“The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinized by an independent third party,” Buju’s said.

“The approval of the EGM proposals paves the way for Think & Learn Pvt Ltd to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments,” Byju’s said. These delays were a result of irrational hostility from four foreign shareholders who chose frivolous litigation over constructive discussion, it said.

“With the new organizational structure and with the return of Byju Raveendran as the operational leader, Byju’s is now well-positioned to begin its next chapter of innovation-led growth by launching at scale its new suite of AI-first products that received positive feedback in the pilot phase,” it said.