A recent report states that Byju’s has made an offer to repay all of its term loans to lenders in less than six months
On 20th September, 2023, Wednesday, the EdTech firm, Byju’s, publicly disclosed the resignation of its Chief Executive Officer (CEO) and Head of India Business, Mrinal Mohit. Subsequently, Arjun Mohan assumed the role of CEO for the EdTech firm’s India business operations, succeeding Mr. Mohit.
It is widely acknowledged that Byju’s has been grappling with a financial crisis for an extended period. The appointment of Arjun Mohan as the new CEO appears to be a strategic move by Byju’s aimed at strengthening its financial standing and facilitating an extensive organisational restructuring.
Arjun Mohan, who was an integral part of Byju’s founding team and last served as the company’s Chief Business Officer (CBO), had briefly departed to take on the role of CEO at upGrad in 2020. However, he returned to Byju’s in July, as noted by the company. During the past three months since his return, he has been closely working with Byju Raveendaran, the founder and Group CEO, in managing the international business.
In response to these developments, Raveendran expressed, as reported in various sources, “If Byju’s has reached the remarkable heights it stands at today, it is due to the extraordinary efforts of our founding team. Mrinal’s contributions have left an indelible mark on our organisation, and we bid him a bittersweet farewell. I am immensely proud of what we have achieved together.”
Just last month, the company witnessed the departure of three of its senior executives: Prathyusha Agarwal, who served as the chief business officer, Mukut Deepak, responsible for overseeing business operations for classes 4 to 10, and Himanshu Bajaj, who held the role of Business Head for the company’s tuition centres.
Reports indicate that Byju’s is actively exploring the possibility of divesting two of its key assets, namely the higher education platform Great Learning and the children-focused digital reading platform Epic. This strategic move is intended to generate the necessary funds to settle its outstanding debts, notably the $1.2 billion Term Loan B owed to certain US-based creditors.
Furthermore, a recent Bloomberg report states that Byju’s has made an offer to expedite the repayment of all term loans to its lenders within a span of less than six months. This repayment plan entails reimbursing $300 million of the distressed debt within three months, with the remaining sum to be paid over the subsequent three months, contingent upon the approval of this proposal, as reports indicate.
Arjun Mohan has assumed leadership at a challenging juncture for the company, marked by financial difficulties. His appointment has ignited hope for Byju’s future. Byju Raveendaran conveyed his optimism about Arjun Mohan’s return to Byju’s and characterised it as a “testament” to his belief in the company’s future.
