In the middle of multiple top-level departures, BYJU’S-owned coaching centre chain Aakash Educational Services Ltd (AESL) has reportedly constituted an executive council to appoint a new chief executive officer (CEO).
BYJU’S CEO Byju Raveendran, Group CFO Ajay Goel, Aakash’s chief business officer Anup Kumar Agarwal, and Aakash’s chief human resources officer Sachin Saxena will be part of the council, The Economic Times reported citing an internal note sent by Raveendran to employees.
This follows the departure of incumbent CEO Abhishek Maheshwari and the impending exit of CFO Vipan Joshi. Sources close to the company told Inc42 that while Maheshwari has exited the company after the completion of his notice period, Joshi is also on his way out of the company.
As per the ET report, Maheshwari’s exit was formally announced by BYJU’S to the employees on Saturday (September 2).
A BYJU’S spokesperson declined to comment on the story.
The executive committee will spearhead the company during the transition period and conduct ‘scheduled’ meetings so that the coaching centre chain continues to operate ‘smoothly’.
“The executive committee has been assembled to provide guidance, support, and leadership during this transition period. We are committed to maintaining the excellence and growth that AESL has consistently delivered in terms of both current business operations and future prospects,” Raveendran said in the internal note.
C-Suite Execs Leave In Droves
The development comes in the middle of a series of top-level exits at multiple subsidiaries of the edtech decacorn. Just days ago, it was reported that the chief executive of BYJU’S subsidiary WhiteHat Jr Ananya Tripathi resigned from her position.
This was preceded by the exit of BYJU’S chief business officer Prathyusha Agarwal, business head of BYJU’S Tuition Centers Himanshu Bajaj and business head for Class 4 to 10 Mukut Deepak in quick succession.
In August itself, BYJU’S senior vice president for international business, Cherian Thomas, also announced his departure from the company. The company also fired more than 100 employees from the post-sale division last month for performance related issues.
Overall, BYJU’S has laid off more than 5,000 employees since the beginning of last year as it grapples with a funding crunch. As part of its cost-cutting measures, the company has shelved expansion plans and cut down on expenses to extend its runway.
The edtech major has also been bogged down by a slew of legal and regulatory issues. While it is locked in multiple legal cases with its term B lenders, IPO-bound Aakash is also in the middle of a tussle between its shareholders. Amid ongoing negotiations with New York-based investment fund Davidson Kempner over an INR 2,000 crore credit line, there appears to be a major rejig in the offing at Aakash’s board.
In a bid to pay Kempner, Aakash also appears to have finalised a $80 Mn cash infusion from Manipal Group chairman Ranjan Pai to tide over the debt crisis.
With much at stake, it remains to be seen what the future holds for Aakash as troubles continue to pile up at its parent firm even as the aoching chain prepares for its much-touted public listing.
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