BENGALURU: Just six months after assuming CEO role at Byju’s, Arjun Mohan has resigned from his position and founder Byju Raveendran will resume daily operational responsibilities after nearly four years.
After becoming CEO, Mohan had announced a restructuring exercise and the company fired nearly 4,000 employees. He will transition to an external advisory role. Also, Raveendran is spearheading the daily operations at a time when the company is facing many legal challenges and cash crunch. Over the past four years, he had focused mainly on strategic aspects such as raising capital and driving global expansion. He will be involved in the company’s day-to-day functioning.
Sources said that Raveendran decided to spearhead as he felt this is the right time to lead the company, particularly during this challenging hour.
The company on Monday also announced a major reorganisation to streamline its operations. As part of this, it is consolidating its businesses into three divisions - The Learning App Online Classes & Tuition Centres, and Test-prep.
Each of these units will have separate leaders who will independently run the businesses sustainably to ensure profitability, it added. “This reorganisation marks the start of Byju’s 3.0 - a leaner and more agile organisation ready to quickly adapt to evolving market dynamics, especially in the realm of hyper-personalized education,” said Byju Raveendran.
Meanwhile, in a huge relief for Byju’s, a majority, 55% of its shareholders, have approved the vote for an increase in authorised share capital put forth in the form of a postal ballot and the Extraordinary General Meeting (EGM) held on March 29, 2024. The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party, the edtech firm on Monday said.
The approval of the EGM proposals paves the way for Think & Learn, parent company of Byju’s, to issue fresh shares and conclude the $200 million rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments.
EGM paves way for fresh share issuance
Approval of the EGM proposals paves way for Think & Learn, parent company of Byju’s, to issue fresh shares and conclude the $200 million rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments