In 2023, Shah Rukh Khan may not renew deal with crisis-hit Byju’s: Report
According to a media report, Bollywood actor Shah Rukh Khan‘s association with the Indian edtech platform, Byju’s, began in 2017. The popular edtech start-up had entered into an endorsement deal with the actor, agreeing to pay him an annual fee of approximately Rs 4 crore.
However, Byju’s, currently facing a governance crisis and various challenges, is reportedly considering not renewing its endorsement agreement with Shah Rukh Khan. The deal, set to conclude in September, may not be extended, as stated in the media report.
The decision not to renew the endorsement deal with Shah Rukh Khan could be attributed to the ongoing issues and controversies surrounding Byju’s. The edtech company has been embroiled in governance-related concerns, which might have impacted its decision-making regarding brand associations and partnerships.
Shah Rukh Khan’s association with Byju’s has been a significant part of the company’s marketing strategy, leveraging the actor’s popularity and influence. However, with the reported uncertainties surrounding the renewal of the endorsement deal, it remains to be seen how Byju’s will navigate its brand positioning and marketing efforts in the future, given the evolving circumstances.
As the situation unfolds, the decision regarding the continuation of the partnership between Byju’s and Shah Rukh Khan will likely be closely monitored by industry observers and fans alike.
According to an Economic Times report, it has been revealed that Shah Rukh Khan’s team is also apprehensive about continuing their association with the troubled edtech platform, Byju’s. The report, citing a source familiar with the matter, states that the team has reservations about continuing the partnership given the serious troubles faced by the edtech company.
Shah Rukh Khan’s association with Byju’s commenced in 2017 when the Indian edtech start-up signed him up for an annual fee of nearly Rs 4 crore. The collaboration aimed to leverage the actor’s popularity and influence to promote the brand and its educational offerings.
However, as Byju’s finds itself entangled in significant challenges and a perceived governance crisis, both the company and Shah Rukh Khan’s team are reportedly having second thoughts about the continuation of their association. The troubles surrounding Byju’s have likely cast a shadow of doubt on the brand’s reputation and the alignment of the actor’s image with the company.
This development suggests that the uncertainties and issues faced by Byju’s have not only impacted the company’s decisions but have also influenced Shah Rukh Khan’s team’s perspective on their continued partnership. The concerns expressed by the team further contribute to the speculation surrounding the future of the collaboration between the actor and the edtech platform.
As the situation evolves, it remains to be seen how Byju’s and Shah Rukh Khan will navigate their association and the implications it holds for their respective brand images and strategies.
The recent concerns and challenges surrounding the association between Shah Rukh Khan and the edtech platform Byju’s are not the first instances of strain in their partnership. In April, a district consumer disputes redressal commission in Madhya Pradesh imposed a fine of Rs 50,000 each on Byju’s and Shah Rukh Khan. The penalty was issued due to allegations of not meeting teaching standards and false advertisements.
Furthermore, in 2021, during the controversy involving Shah Rukh Khan’s son, Aryan Khan, Byju’s suspended its advertisements featuring the Bollywood star. This move was likely made to avoid any negative impact on the brand’s image associated with the ongoing legal issues surrounding Aryan Khan.
Apart from the challenges related to the association with Shah Rukh Khan, Byju’s has faced significant setbacks in terms of its board members and auditors. The edtech company lost board representatives from three global investors, namely Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative. Additionally, its auditor, Deloitte, severed ties with Byju’s.
These developments have dealt a blow to Byju’s standing as one of India’s most successful start-ups. The departure of key board members and the disassociation with a prominent global auditor have raised concerns about the company’s governance and operations. These incidents highlight the magnitude of the challenges faced by Byju’s and the potential implications for its future growth and reputation in the edtech industry.
Although the exact reasons for the board members stepping down from Byju’s were not disclosed, Deloitte, the company’s former auditor, stated that it decided to sever ties due to delays in the disclosure of certain financial statements. This development raised concerns about transparency and adherence to financial reporting practices within the organization. Additionally, Byju’s has faced further challenges, such as raids conducted by authorities over suspected violations of foreign exchange laws, adding to the company’s woes.
In the midst of these ongoing issues, the Board of Control for Cricket in India (BCCI) officially announced Dream11 as the new lead sponsor for Team India. This partnership signifies Dream11 replacing Byju’s in this prominent sponsorship role. The fantasy sports platform secured a deal with the world’s wealthiest cricket board for a period of three years, although the financial details of the agreement were not disclosed. However, it is anticipated that the new deal’s value is likely to be lower than the previous arrangement with Byju’s.
The selection of Dream11 as Team India’s lead sponsor highlights the shifting dynamics in the sponsorship landscape. The decision to replace Byju’s with Dream11 suggests that the cricket board sought a fresh partnership amidst the challenges faced by Byju’s. While the financial terms of the deal remain undisclosed, the change in sponsorship signals a significant development in Indian cricket and reflects the evolving nature of brand associations within the sports industry.
As Dream11 takes on the mantle of Team India’s lead sponsor, it will be interesting to observe how this collaboration unfolds and the impact it has on the visibility and brand positioning of both Dream11 and Indian cricket in the coming years.
Co-founder and CEO of Byju’s, Byju Raveendran, reassured his employees during a townhall and said that he was optimistic about the future and that “the best of Byju’s is yet to come”. Raveendran also said that the company has “not come this far, only to come this far”.
