Monday, May 20, 2024

Byju’s appoints Vedanta Group’s Ajay Goel as CFO

MUMBAI : Edtech decacorn Byju’s has appointed Vedanta Group’s Ajay Goel as its chief financial officer amid delay in filing its financial results for year ending March 31, 2022. In a release announcing the appointment, the company said that Goel will help strengthen the company’s financial operations, long-term business strategies, and path to profitability. 

The Bangalore-based company has been under pressure after the accounting change it brought about in reporting its financials for FY 21 that led to a massive drop in its revenue realisations and squeezed its profits out.  

Goel, who was last the group deputy CFO at Vendanta Resources will now be tasked with implementing stronger financial controls, a critique that existing auditors of Byju’s has been making.  

Goel’s appointment comes almost 16 months after Byju’s former CFO PV Rao quit in December 2021.  

As per the company release, as CFO, Ajay will be responsible for overseeing financial strategy and management for Byju’s. “He will work closely with the founders and the senior leadership on strategy development, capital planning and financial analysis. With over two decades of experience, Ajay has a proven track record of delivering strong financial and operational results to companies across sectors, including Vedanta, Diageo, GE, Coca Cola, and Nestle,” it said.  

 “We are delighted to welcome Ajay Goel to our BYJU’S family to further strengthen our leadership team. With his extensive experience and diverse skill-set, Ajay is the ideal candidate to take on the role of Chief Financial Officer as we continue to chart the course of sustainable growth in this exciting new phase. His strategic thinking and financial acumen will be instrumental in helping us create even more value for our stakeholders,” Byju Raveendran said in a release.  

Even as the founder of the most valued startup in the country is trying to stitch together a new funding round of around $400 million, there have been concerns over the firm’s financial controls.  

Byju’s, founded in 2011, losses widened to 4,589 crore from 232 crore in the previous fiscal. Its results for 2022 have not been filed with the registrar of companies.The company has also seen some of its early investors exploring to cash out, as reported by Mint earlier. A few have farmed out ‘soft’ mandates to investment banks to look for buyers, the report said. 

The company has also faced heat from its bond holders for the senior debt it raised in 2021. Amidst delay in filing its financials, the bond holders have been renegotiating the terms of the loan with the company, which has further put pressure on Byju Raveendran-led company to manage its cost of capital well.

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