Byju's Unlikely To Extend Endorsement Deal With Shah Rukh Khan?

In the recent times, the company also faced high-profile board departures, several valuation reductions, delayed financial statements, and a legal struggle over a $1.2 billion term loan

According to reports, edtech company, Byju's is unlikely to renew its endorsement agreement with actor Shah Rukh Khan when it expires in September 2023.

"With the ed-tech platform in serious trouble, Shah Rukh's team is also hesitant to continue the association with the brand," a source told the Economic Times.

However, BW Marketing World, reached out to Byju’s team and the source declined the reports stating, “Contracts are renewed when the term gets over. Currently, the contract is ongoing, and whenever it’s up for renewal both Byju’s and SRK will decide the way forward. There is a lot of time before the renewal discussion starts.”

This is not the first time, Byju's association with Khan has gotten into trouble. On the complaint of a woman who enrolled for coaching to become an Indian Administrative Service (IAS) officer, the District Consumer Disputes Redressal Commission in Indore, Madhya Pradesh, issued an order against an employee of ed-tech firm Byju's and film superstar Shah Rukh Khan for alleged "fraudulent behaviour" and "unfair trade practice" in May.

The aspirant further claimed that she was enticed into the course by deceptive and misleading internet marketing on behalf of Byju's competitors and that she was encouraged by an online advertisement starring Shah Rukh Khan.

The Board of Control for Cricket in India (BCCI) recently made public that the fantasy game platform Dream11 has replaced Byju's as Team India's next lead sponsor. The edtech giant paid Rs 5.5 crore for each bilateral match, with Byju's agreeing to a total payment of $55 million which is Rs 440 crore.

Over the last year, the Byju's suffered a series of setbacks, beginning with numerous rounds of layoffs that resulted in the layoffs of thousands of employees.

The Enforcement Directorate (ED) seized Byju's CEO Raveendran's offices under the Foreign Exchange Management Act (FEMA) for allegedly receiving Rs 28,000 crore in foreign direct investment (FDI) between 2011 and 2023.

This has resulted in high-profile board departures, several valuation reductions, delayed financial statements, and even a legal struggle over a $1.2 billion term loan.

Peak XV Partners (previously Sequoia Capital India), Prosus (formerly Naspers), and the Chan Zuckerberg Initiative all declared their resignations from the company's board of directors last month.