Indian edtech giant BYJU's which has been the shirt sponsor of the Indian cricket team since 2019 is reportedly seeking to exit the deal after March 2023 and cut it's existing deal with the Board of Control for Cricket in India (BCCI).
According to an ET report, with the current development, BYJU’S is looking to rationalise its media expenditure.Insidesport reported that BCCI has confirmed the development. “Yes, they have written to us they want to exit jersey sponsorship. The matter will be discussed at an apex council meeting. They need to comply with all contractual obligations and exit can be taken,” the report quoted a senior official.
BYJU's has been at the centre of the massive edtech churn. Pressure of mounting losses has forced the company to streamline its finances.
The company recently announced plans to lay off 5% of it's employees (2,500 employees). It has shut down centres across nearly 60 Indian cities.
The heavy scrutiny on BYJU’S is a result of the mounting losses. The Byju Raveendran-led startup recorded a 20X jump in losses at INR 4,588 Cr in FY21 from INR 231.69 Cr in FY20.
Its revenue from operations stood at INR 2,428.3 Cr in FY21- a 3.3% drop from INR 2,511 Cr in the previous year. Its advertising and promotional expenses had jumped 150% to INR 2,251 Cr from INR 899 Cr in FY20.
The company has received criticism for it's marketing and promotional expenses by bringing on board celebrities and athletes for brand endorsements whilst furloughing their staff. The most recent being Lionel Messi who became the global ambassador for the edtech giant. BYJUS is also one of the sponsors at the ongoing FIFA World Cup in Qatar.
