Bengaluru: Byju’s, India’s leading ed tech company, while facing struggles with loan issues, regulatory compliance, and management shake-ups, is grappling with another high-profile departure as its Chief Financial Officer (CFO) Ajay Goel resigns, returning to Vedanta to oversee the company’s complex demerger plans. Goel’s departure, just six months after joining Byju’s, comes at a critical juncture for the company, which is dealing with pending financial filings, loan disputes, and ongoing efforts to secure fresh capital.
Byju’s, known as India’s most valuable startup, has been navigating a series of challenges, including accounting irregularities, alleged mis-selling of courses, and significant layoffs. The departure of Goel, who was appointed in April 2023, raises further concerns about the company’s stability.
Amidst these challenges, Byju’s is also renegotiating terms with its creditors after raising a substantial term loan B of $1.2 billion from investors in 2021. The company’s struggles have been exacerbated by a combination of dwindling venture capital funding and reduced demand for online learning services.
Despite attempts to regain footing, including the hiring of Goel and the elevation of Arjun Mohan as CEO, Byju’s has faced criticism and internal upheaval. Notably, several investor board members have departed, citing differences with the company’s founder, Byju Raveendran.
Additionally, Byju’s has faced regulatory scrutiny due to delayed financial filings. The company is yet to file its FY22 results with the Ministry of Corporate Affairs (MCA). In the past, it filed its FY21 results nearly 18 months after the financial year ended, reporting unexpected revenue declines and widening losses.
As Byju’s navigates these challenges, including discussions about divesting assets like Great Learning and Epic, its leadership faces mounting pressure to stabilize operations, restore investor confidence, and address concerns about the company’s long-term sustainability.
