Edtech start-up Byju’s, which is grappling with a series of challenges, may not renew its endorsement contract with Bollywood actor Shah Rukh Khan, according to a report by the Economic Times (ET). The endorsement contract between Byju’s and Shah Rukh Khan is ending in September, according to ET report. Citing a source privy to the development, ET said, “With the ed-tech platform in serious trouble, Shah Rukh’s team is also hesitant to continue the association with the brand,”
In 2017, the Bengaluru-based company had signed up the Bollywood actor as its brand ambassador for an annual fee of nearly Rs 4 crore, and he has been the ed-tech platform’s most visible face ever since.
This is not the first time Byju’s association with Shah Rukh Khan has hit a rough patch. In April, the District Consumer Disputes Redressal Commission in Madhya Pradesh sent a notice to a staffer of Byju’s and Khan for alleged “fraudulent behaviour” and “unfair trade practice” on the complaint of a woman and had asked them to return the fees along with compensation.
The woman had deposited Rs 1.8 lakh for Byju’s coaching (course) for IAS (Indian Administrative Service) preparation in 2021, but no coaching facility was provided to her. The court fined Byju’s and the thespian Rs 50,000 each “for not meeting teaching standards and false ads”.
Last week, Byju Raveendran, the co-founder and CEO of Byju's, addressed his employees in his first official communication following the recent resignations of three board members and auditor Deloitte. Raveendran assured employees of a stronger comeback in an attempt to alleviate any concerns or panic. Amidst growing woes, Raveendran told employees, “We are in a tough phase, but we will come back soon,” in a 45-minute townhall.
“Last 12 months we have been struggling. But edtech will stay forever, and we are the pioneers. It is one of the most important sectors and we are in the correct space,” Raveendran said. He also clarified that the board members' resignations were not a result of Deloitte's departure. He expressed gratitude towards all three board members for their support and guidance during their tenure at the company.