Amid deep financial crisis, Byju’s and Shah Rukh Khan may part ways

With Byju continuing its cost-cutting measures, the edtech platform is unlikely to renew its endorsement contract with actor Shah Rukh Khan. The Economic Times (ET) Reported quoting people in the know. The endorsement contract expires in September. The person cited told the paper that while the company finds itself in deep financial trouble, SRK’s team is also reluctant to continue associating with the brand.

In 2017, Byju’s signed SRK for an annual payment of around Rs 4 crore. Since then, the Bollywood star has been the most recognizable face of Biju. However, Byju’s and Shah Rukh Khan’s found themselves in a similar situation in earlier instances as well.

In April 2023, the Consumer Dispute Compensation Commission of Madhya Pradesh imposed a fine of Rs 50,000 each to Beoju and Shah Rukh Khan, ET The report said. The fine was imposed for “failure to meet teaching standards and false advertisements”.

Moreover, the actor was asked questions about his association with Byju on social media platforms. In 2021, when Khan’s son Aaryan was caught up in controversy, Byju stopped its ads featuring the actor.

After experiencing a downturn in the online education market, Byju continues to cut jobs and raising money has become more difficult for the company. In a recent announcement, BCCI announced that Byju has been replaced by online gaming company Dream11 as the main sponsor of the Indian cricket team.

In a recent development, representatives from three major investors in Byju’s, including Peak XV Partners (formerly Sequoia Capital India), Prosus (formerly Naspers), and Chan Zuckerberg Initiative, have stepped down from the company’s board.

Furthermore, Deloitte also left the company as its auditor citing that Byju’s was unable to release financial statements for fiscal year ’22, which Deloitte was supposed to consider.