Arjun Mohan, the CEO of Byju’s India, has resigned from his position after serving for seven months, amidst the company’s ongoing struggles to address its outstanding debt, employee salaries, and vendor dues. Founder Byju Raveendran will now take over the leadership of the company.
In a statement issued on Monday, the company announced the leadership change, stating that it follows a comprehensive seven-month operational review and cost optimization initiative led by outgoing CEO Arjun Mohan. Mohan will transition to an external advisory role within the company.
Following Mohan’s departure, Byju’s will restructure its business into three segments: the learning app, the tuition-center business, and the test prep vertical, which is considered the company’s flagship.
Byju’s is currently engaged in a contentious legal dispute with its investors regarding alleged financial mismanagement and compliance issues. The company’s valuation, once at $22 billion, has sharply declined due to investor allegations and regulatory investigations, now standing at approximately $250 million, representing a 99% decrease from its peak.
The company has faced challenges meeting salary payments and laid off over 500 employees earlier this month. Legal battles with investors have also prevented Byju’s from accessing the $200 million raised in a rights issue due to a court order.
Amidst the escalating crisis and concerns about its viability, around 1,500 employees have left the company in recent months. To reduce costs, Byju’s has vacated its offices nationwide, retaining only its headquarters at IBC Knowledge Park in Bengaluru, as reported by media outlets.
