BYJU'S woes continue as WhiteHat Jr CEO Ananya Tripathi resigns
What's the story
The CEO of WhiteHat Jr (a subsidiary of BYJU'S), Ananya Tripathi, has submitted her resignation. This marks another high-level departure at India's most-valued start-up. To note, Tripathi joined the company in April last year and previously served as Myntra's Chief Strategy Officer. BYJU'S is yet to formally accept her resignation and is still trying to convince her to stay, per Moneycontrol.
Details
Challenges plague BYJU'S WhiteHat Jr acquisition
WhiteHat Jr has faced significant challenges, including criticism for its aggressive sales strategies and questionable advertising campaigns. These issues have impacted BYJU'S, with WhiteHat Jr contributing a loss of Rs. 1,548.76 crore to the company's loss before tax from operations in FY21. BYJU'S CEO, Byju Raveendran, has acknowledged that WhiteHat Jr is the company's only acquisition that has struggled. WhiteHat Jr was acquired by BYJU's in August 2020 for $300 million.
Problems
Multiple senior executives depart BYJU'S
Recent senior-level exits at BYJU'S include the departure of the company's Chief Business Officer Prathyusha Agarwal. Himanshu Bajaj, the Business Head of BYJU'S Tuition Centers and Mukut Deepak, the Business Head for Classes 4 to 10, have also quit the company. Reasons behind these exits range from operational disagreements with the founder to personal reasons such as maternity leave, per reports. Cheriyan Thomas, BYJU'S Senior VP of international business, has also stepped down to lead US-based Impending.
Insights
BYJU'S is implementing a slew of changes
To tackle its challenges, BYJU'S has made significant organizational changes, including workforce reduction and relinquishing office space. The company has also set up a board advisory council and appointed industry veterans including Rajnish Kumar and TV Mohandas Pai, as advisors. BYJU'S secured $800 million in funding in March last year, raising its valuation to over $22 billion. However, since then, it has failed to raise money, even at a lower valuation.