In the latest twist and unending trouble for Byju’s, according to sources familiar with the situation, Arjun Mohan, the CEO of Byju’s India and a close associate of founder Byju Raveendran, is stepping down after just over six months.

His departure will likely represent a significant loss at the top level and will further add to the challenges facing the troubled edtech company, especially as Raveendran is currently engaged in conflicts with investors on various fronts.

Sources indicate that Raveendran will now assume direct control over the day-to-day operations of the Indian arm of the business, which falls under the umbrella of Think & Learn, following Mohan’s exit, marking Raveendran’s return to daily operations after nearly four years.

Internal announcements regarding these changes are expected to be made according to current plans. Mohan had taken over from Mrinal Mohit last year, both of whom were former students of Raveendran during the early days of his teaching career, particularly in preparing students for the common admission test (CAT).

The Twist In The Mix
Raveendran’s decision to resume his role as an operational CEO and oversee daily operations holds significance, especially considering that a group of Byju’s investors had voted to remove him from the CEO position during an extraordinary general meeting held in February.

However, the outcome of this meeting is currently under legal challenge in the Karnataka High Court, with an interim stay preventing the enforcement of the resolutions.

According to individuals briefed on the matter, Mohan informed Raveendran of his resignation last week and has formally submitted his resignation. However, he will remain an advisor to Byju’s for the time being.

Mohan, who joined Byju’s in September, played a key role in restructuring the business and streamlining a sizable employee base.

He was instrumental in spearheading the implementation of the Byju’s 2.0 business strategy and was closely involved in the day-to-day operations of Aakash, the brick-and-mortar coaching firm owned by Byju’s, which is a crucial asset for the edtech group.

Prior to his tenure at Byju’s, Mohan served as the Chief Business Officer before assuming the role of India CEO at Ronnie Screwvala’s UpGrad for approximately two years.

Byju’s controversies that made headlines

Byju’s, once a prominent ed-tech company, faced a series of challenges as shareholders demanded the departure of Byju Raveendran, as the company faced financial turbulence.

Moreover, international creditors intensified their pressure on the company due to outstanding payments.

At its peak, Byju’s stood as India’s premier online education platform, boasting a valuation of approximately $22 billion. However, the company has since encountered legal and regulatory issues, coupled with diminished demand and irregularities in foreign investments.

Compounding the company’s woes, a US court ruled in favour of foreign investors of Byju’s who are seeking prompt payment from the company.
Shareholders were actively demanding for the founders to be removed from key positions within Byju’s.

Further complicating matters, recent developments in the US have seen a segment of Byju’s declared bankrupt by a court-appointed agent, attributing the company’s $1.2 billion debt.

Timothy Pohl, CEO of Byju’s Alpha Inc., stated in court filings that the company lacks the necessary funds to sustain its legal dispute with its parent company over the debt.

Here are five other instances when Byju’s faced scrutiny for various reasons

ED Raids And FEMA Violations
In April 2023, the Enforcement Directorate (ED) conducted raids on three of Byju’s offices in Bengaluru, suspecting violations of the Foreign Exchange Management Act (FEMA).

The ED issued a FEMA violation notice amounting to ₹9,362.35 crore, marking the beginning of a downward spiral for the education giant.

Byju’s vs Lenders in US Court
One of the most concerning episodes in Byju’s history involves a $1.2 billion loan obtained from US lenders, ostensibly to bolster the company’s financial position.

Subsequently, the lenders accused Byju’s of delayed payments.
In response, the ed-tech company filed a lawsuit against one of the lenders, alleging undue pressure regarding loan repayment.

The US branch of Byju’s has faced significant controversy in its history.

Byju’s Alpha Inc., the US arm of Byju’s, found itself in legal turmoil when it was sued by American lenders for allegedly concealing $500 million.

Subsequently, a Delaware court ruled in favor of the lenders, leading Byju’s Alpha Inc. to file for bankruptcy. The CEO cited a lack of financial resources as the reason for the company’s inability to continue disputing the debt with its parent company.

Byju’s encountered widespread criticism due to layoffs and disruptions in payroll processing.

In June 2023, Byju’s announced layoffs affecting over 1000 employees across various departments, including mentoring, logistics, training, and sales.

Additionally, in August, 400 employees were terminated following a performance review cycle. Many employees reported not receiving salaries for several months, and the settlement of dues for laid-off employees remained unclear.

Shareholders of Byju’s are actively seeking changes in leadership.
Six investors in Think and Learn Private Limited, the company operating under the Byju’s brand, called for an extraordinary general meeting to address concerns within the edtech giant.

Their agenda included reducing the founders’ control over the company and removing Byju Raveendran from his position as CEO, further escalating internal conflicts within the organization.