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Rajnish Kumar and TV Mohandas Pai Exit Byju's Advisory Panel Amid Legal Turmoil

Top executives Rajnish Kumar and TV Mohandas Pai decide to step down from Byju's advisory panel amidst legal challenges and financial troubles plaguing the edtech giant 

20-05-2024
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Former State Bank of India chief Rajnish Kumar and former Infosys chief financial officer TV Mohandas Pai have announced their decision not to renew their contracts with Byju’s, ending their one-year tenure on June 30. Their departure from the advisory panel follows a string of board exits and financial difficulties faced by the edtech firm.

Kumar and Pai informed Byju’s founder, Byju Raveendran, about their decision, citing ongoing legal battles and challenges faced by the company. Their role in the advisory panel was aimed at addressing investor concerns and assisting Byju’s in navigating its legal issues, including financial disclosures and team rebuilding.

However, the company encountered hurdles as it became embroiled in lawsuits in both India and the US, involving creditors and shareholders seeking Raveendran's removal over allegations of mismanagement.

While expressing gratitude for Kumar and Pai’s contributions, Raveendran acknowledged the setbacks caused by ongoing litigations but expressed his intention to continue seeking their guidance in the company's rebuilding efforts.

In a joint statement, Kumar and Pai clarified that their decision not to extend their tenure was mutually agreed upon. Despite formally ending their engagement, they affirmed their willingness to offer advice to Byju’s in the future.

Byju’s, once valued at $22 billion, has seen a significant devaluation to $1 billion by investor Blackrock, with Sequoia Capital writing off its investment entirely. Recent board resignations, delayed salary payments, layoffs, and the resignation of the company’s CEO have added to Byju’s woes.

Multiple insolvency proceedings are underway against Byju’s, and while shareholders approved a Rs 200-crore rights issue, the company cannot access these funds until court hearings conclude.

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