3 senior executives quit Byju's amidst restructuring challenges

In yet another setback for edtech player Byju's, three senior executives, including Chief Business Officer Prathyusha Agarwal, have resigned amidst the company's ongoing efforts to restructure and regain stability. Himanshu Bajaj, Business Head of Byju's Tuition Centres, and Mukut Deepak, Business Head for Classes 4 to 10, are also among the executives who have tendered their resignations, according to media reports. These departures come at a crucial juncture when Byju's is working to overhaul its operations in response to various challenges.

Prathyusha Agarwal, who had joined Byju's in February 2022 from Zee Entertainment Enterprises, brought with her extensive experience as the former Chief Consumer and Data Officer at Zee. Himanshu Bajaj had joined Byju's in November 2021 to oversee Byju's Tuition Centres division after a long tenure at management consulting firm Kearney. Mukut Deepak, who had served as Tata Play's Chief Business Officer, had been associated with Byju's for almost two years.

Leadership shakeup insight

Sources revealed that the resignations stem from the recent restructuring carried out by the company. Byju's spokesperson confirmed the development, highlighting the need for restructuring to achieve profitability and sustainable growth. The company has consolidated its operations into two key verticals—K-10 (Kindergarten to Class 10) and Exam Preparation. Ramesh Karra is leading the K-10 vertical, while Jitesh Shah oversees the exam preparation business.

Byju's Tuition Centres, previously considered a pivotal growth engine, underwent changes resulting in the redundancy of roles like Prathyusha Agarwal's, leading to her departure. The company's core K-12 business has also been affected by these changes. These exits coincide with Byju's efforts to overcome operational hurdles.

This wave of resignations follows the departure of Cherian Thomas, Senior Vice President for International Business at Byju's, who played a key role in spearheading the company's acquisition of the educational gaming platform Osmo in 2019. Despite Osmo's reported revenue of $100 million (approximately Rs 826.71 crore) in the fiscal year 2020-21, its leadership team has been experiencing significant changes.

Challenges pile up

Byju's has faced a series of challenges in recent times, including the exit of three key investor board members due to disagreements with founder Byju Raveendran over operational matters. Deloitte, the company's longtime auditor, also resigned citing delays in the release of Byju's financial results for the fiscal year 2021-22. The company has also encountered difficulties with creditors and has undergone a substantial downsizing, letting go of over 2,000 employees and surrendering its largest office space in Bengaluru.

Despite these challenges, Byju's is striving to regain stability by implementing strategic measures, such as forming a board advisory council with industry veterans like TV Mohandas Pai and Rajnish Kumar. The company is also bringing in experienced professionals, including Richard Lobo, as its new head of human resources. Byju's, once valued at over $22 billion (approximately Rs 1.82 lakh crore), has amassed significant funding and is a prominent player in the edtech sector. However, its recent setbacks have prompted the need for strategic restructuring to navigate its way forward. The company is expected to file its audited earnings for 2022 by September and 2023 results by December, as reported by Reuters.