Edtech major BYJU’s has roped in TV Mohandas Pai and Rajnish Kumar on its newly constituted Advisory Council weeks after three of its board members resigned, in a move to bolster governance mechanisms amid mounting troubles for the company.

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"The founders of BYJU'S are pleased to announce that Rajnish Kumar and TV Mohandas Pai have accepted their invitation to join the company's newly constituted Advisory Council. This council will play a pivotal role in advising and mentoring BYJU'S Board and its CEO, Byju Raveendran, on crucial matters that shape the company's future," BYJU’s said in a statement.

In this press statement, T V Mohandas Pai was quoted as saying, "Byju and Divya are amongst the most impressive entrepreneurs I have worked with from the startup ecosystem. Since our first contact more than a decade ago, they have built the largest edtech company globally and amongst the largest startups in India. I see in them the drive to build the group into a successful corporation, and to ensure they deliver upon their mission in this sector as a category creator and market leader."

"As part of the Advisory Council, I look forward to advising the leadership in evolving the systems of governance and financial reporting, as well as to grow an organisational structure that can serve as a resilient foundation for the future of the company," he added.

The statement also quoted Rajnish Kumar, as saying "My discussions with Byju and Divya convinced me that they are dedicating sincere efforts to steer a course correction of the company's governance structure. They have reached out to engage with experienced professionals with a proven track record of running large corporates and with a deep understanding of governance issues."

"The company has achieved an impressive growth trajectory and has built significant scale in its base of revenue, operations, and global presence. With calibrated guidance from experienced advisors who have come together to support these dynamic entrepreneurs, the company will be able to move forward and continue to contribute to this very important field of education."

When CNBC-TV18 reached out to Rajnish Kumar about this development, he elaborated on his decision behind joining the company. “I agreed to join in an advisory role to help them (BYJU’s) resolve governance-related issues. I have done so at BharatPe, and am always ready to help young entrepreneurs who need guidance. The idea is to guide them in the right path,” Kumar told CNBC-TV18.

“I consider it my duty to help entrepreneurs,” he added, saying that he was convinced that the founders had the company’s best interests at heart and were doing a good job at their core function. “As far as the ED (enforcement directorate) matter is concerned, they (BYJU’s) have already clarified. We will see what happens later,” Kumar told CNBC-TV18 when asked about concerns relating to the company.

“it obviously helps that some of Mohandas Pai’s stature has also agreed to come on board on the advisory council,” he added, saying it helped him make his decision as well.

When asked if he was also offered any board position, Rajnish Kumar told CNBC-TV18 that he was only offered an advisory position, which he considered and accepted.

TV Mohandas Pai did not offer any additional comments on the rationale behind his joining the company when CNBC-TV18 reached out to him.

“The appointment of these two esteemed thought leaders in finance and governance to the Advisory Council underscores BYJU'S commitment to enhancing its financial governance mechanisms and leveraging expert advice to drive sustainable growth and strategic decision-making. The BYJU'S Advisory Council is poised to bring fresh perspectives and finance acumen to help BYJU'S maintain its position as a global leader in the ed-tech space,” BYJU’s said in its statement.

"We are truly honoured to welcome Rajnish Kumar and T V Mohandas Pai to the BYJU'S Advisory Council. Their decision to join this council is a resounding vote of confidence in our mission, vision, and strategic direction. Their unparalleled leadership experience and deep understanding of the finance and technology domains will greatly enrich our strategic initiatives and strengthen our governance. With their invaluable insights and expertise, we are confident that we will continue to have a transformative impact on the education landscape," said Divya Gokulnath and Byju Raveendran, Founders of BYJU'S.

TV Mohandas Pai is the former CFO and Board Member at Infosys and the co-founder of the midday meal program Akshaya Patra. His private equity firm Aarin Capita is also an early investor in BYJU'S.

Rajnish Kumar, a renowned figure in the finance world, and the former Chairperson of State Bank of India. He is currently the Chairman of BharatPe.

The appointments come at a time when BYJU”s is facing multiple headwinds from ongoing lawsuits with lenders over a larger USD 1.2 billion loan, a growing rift between shareholders, board resignations, delay in filing of results, auditor resignation and an ongoing investigation from the Enforcement Directorate over alleged FEMA violations.

First Published:Jul 13, 2023 6:02 PM IST