Byju's, the world's most-valued edtech, has roped in TV Mohandas Pai, one of its initial backers through Aarin Capital and former State Bank of India and current BharatPe Chairman Rajnish Kumar to its newly-constituted board advisory committee to provide advice and guidance to the CEO Byju Raveendran on crucial matters.
Raveendran invited Pai and Kumar to join the committee, known as the Advisory Council, and they accepted the role, the company said in a statement on July 13. The two will be mentoring Raveendran and its Board of Directors in the future, the company added.
"Byju and Divya are among 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," said Pai in a statement.
"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.
Last week, Raveendran, in an extraordinary general meeting held with over 70 shareholders, had proposed forming a board advisory committee to provide advice and guidance to the CEO on matters pertaining to the composition of the board and the governance structure suitable for Byju's.
"The BAC will serve as a working group consisting of independent directors with credible backgrounds and relevant experience from diverse corporate fields," Raveendran had told shareholders then.
Byju's move to constitute a new advisory committee and rope in Pai and Kumar comes just a few weeks after its three key board members – GV Ravishankar of Peak XV Partners (Sequoia Capital India), Russel Dreisenstock of Prosus and Vivian Wu of Chan Zuckerberg Initiative stepped down from the board of Byju's over differences with founder Raveendran. The same day, Deloitte, Byju's auditor and one of the largest audit firms globally, also resigned citing a "long delay" in the company's FY22 (2021-22) results.
Byju's is also looking to strengthen its management. Earlier in the day, the company roped in Arjun Mohan, former CEO of upGrad, as the CEO of its international business.
In a telephonic conversation with Moneycontrol, Kumar said, "When companies are growing they somehow miss the governance part. We are now realising this in the Indian startup ecosystem. Byju has fantastic people and produces fantastic content. Certain things should have been handled in a better manner."
"Time commitment would have been much more on the Board. Having a proper accountability framework, see to it that financial statements are in order. I have always believed that the energy of young people with the experience of older people will be an ideal combination," he added.
Kumar also told Moneycontrol that in the last few weeks, the company has identified certain areas that need to be improved. Raveendran and Gokulnath are aware that more detailing will be required, he said.
"The management team will draw an action plan after understanding these issues and challenges," he told Moneycontrol.
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