Byju’s announced a reorganisation to streamline its operations and position the company which aimed at long-term success. As part of this shift, BYJU’S is consolidating its businesses into three divisions- The Learning App, Online Classes and Tuition Centres and Test-prep, as per the official press release from the company.
This new structure is expected to enable each vertical to be nimbler, cost-efficient and better equipped to capitalise on market opportunities. Further, each of these units will have separate leaders who will independently run the businesses sustainably to ensure profitability, as mentioned in the release.
As per the officials of Byju’s, the changes follow an extensive seven-month operational review and cost optimization exercise led by outgoing BYJU’S India CEO Arjun Mohan. Mohan will now transition to an external advisory role, lending his ed-tech expertise to the company and its founders during this transformation phase.
“This reorganisation marks the start of BYJU’S 3.0 – a leaner and more agile organisation ready to quickly adapt to evolving market dynamics, especially in the realm of hyper-personalised education,” Byju Raveendran, founder and group CEO, Byju’s, said.
In a further development, Byju’s also announced that the vote for an increase in authorised share capital put forth in the form of a postal ballot and the Extraordinary General Meeting (EGM) held on March 29, 2024, has been approved by a majority 55% of the total votes polled, as per the official announcement from the company.
The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party, it added.
The approval of the EGM proposals paves the way for Think & Learn Private Limited, the parent company of BYJU’S, to issue fresh shares and conclude the rights issue aimed at tackling the liquidity crunch, including unpaid salaries, regulatory dues and vendor payments. These delays were a result of irrational hostility from four foreign shareholders who chose frivolous litigation over constructive discussion, as mentioned in the release.
“We are grateful to our investors for their support and understanding during this pivotal phase. Their invaluable support in providing essential working capital underscores their collective commitment to our renewed growth push,” Byju added.