The Chief Financial Officer (CFO) of India’s edtech giant Byju’s, Ajay Goel, has decided to step down from his role, returning to his previous employer Vedanta as the conglomerate undergoes a demerger. This move carries notable implications, especially for Byju’s, which is grappling with multiple challenges at a crucial juncture.
Ajay Goel’s departure, occurring just six months after he assumed the CFO position at Byju’s, places the company in a challenging situation. At this point, Byju’s is yet to file its financial results for FY22 (2021-22) and is embroiled in disputes with lenders over a billion-dollar loan. Simultaneously, the company is striving to secure fresh capital to sustain its operations.
Byju’s has acted swiftly to address the vacuum left by Ajay Goel’s exit. The company announced two critical appointments in its finance department to ensure continuity and effective financial management. Nitin Golani, the current President-Finance at Byju’s, is set to assume the role of India CFO, taking on added responsibilities to steer the company’s financial strategies. This move signifies a strong commitment to maintaining financial stability in these challenging times.
Moreover, Pradip Kanakia joins Byju’s as a senior advisor, bringing over 35 years of experience, including leadership positions at Price Waterhouse and KPMG. His extensive expertise in finance strategy, performance management, auditing, and governance positions him as a valuable addition to Byju’s advisory council.
Speaking on his departure, Ajay Goel acknowledged Byju’s for its support during his short yet impactful tenure, specifically for his role in expediting the FY22 audit process.
The departure of Ajay Goel is notable not only for the swiftness of his exit after his appointment but also for the strategic direction he set during his tenure. One significant move during his leadership was the transition from Deloitte to BDO as the company’s auditor, with BDO expected to sign off on Byju’s FY22 numbers shortly.
However, the challenges facing Byju’s extend beyond its finance department. The company is yet to file its FY22 results with the Ministry of Corporate Affairs (MCA), having filed its FY21 results nearly 18 months after the financial year ended. During this period, Byju’s reported an unexpected decline in revenue and a significant increase in losses.
In addition to financial hurdles, Byju’s has faced a series of difficulties, including accounting irregularities, allegations of mis-selling courses, and a significant number of layoffs, primarily due to a decrease in venture capital funding and declining demand for online learning services. Consequently, key members of the investor board have departed, citing differences with founder Byju Raveendran.
With Ajay Goel’s departure and the strategic appointments of Nitin Golani and Pradip Kanakia, Byju’s aims to ensure a strong financial footing and effective leadership in a time of significant change and challenge.
