Byju’s unlikely to renew its endorsement deal with Shah Rukh Khan

Bollywood actor Shah Rukh has been Byju's most visible face since 2017

Edtech major Byju’s, which is grappling with a series of challenges, is not in a mood to renew its endorsement contract with Bollywood actor Shah Rukh Khan when it ends in September, according to a report.

“With the ed-tech platform in serious trouble, Shah Rukh’s team is also hesitant to continue the association with the brand,” an unnamed source told the Economic Times.

Moneycontrol couldn't independently verify the report.

In 2017, the Bengaluru-based start-up had signed up the Bollywood actor as its brand ambassador for an annual fee of nearly Rs 4 crore, and he has been the ed-tech platform’s most visible face ever since.

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This is not the first time Byju’s association with Khan has hit a rough patch. In April, the District Consumer Disputes Redressal Commission in Madhya Pradesh sent a notice to a staffer of Byju’s and Khan for alleged “fraudulent behaviour” and “unfair trade practice” on the complaint of a woman and had asked them to return the fees along with compensation.

The woman had deposited Rs 1.8 lakh for Byju’s coaching (course) for IAS (Indian Administrative Service) preparation in 2021, but no coaching facility was provided to her. The court fined Byju’s and the thespian Rs 50,000 each “for not meeting teaching standards and false ads”.

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In the past one year, Byju’s has cut thousands of jobs to lower costs due to a slowdown in the online education market amid cash crunch issues.

Last weekend, the Board of Control of Cricket (BCCI) announced that the fantasy gaming platform Dream11 has replaced Byju as the next lead sponsor for Team India.

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Meanwhile, representatives of three key investors, Peak XV Partners (formerly Sequoia Capital India), Prosus (earlier Naspers) and Chan Zuckerberg Initiative — confirmed their resignations from the company’s board last month.

Byju’s CEO Byju Raveendran has said the company is growing slowly but sustainably and is close to achieving profitability at the group level.