Shah Rukh Khan may not renew deal with crisis-hit Byju's: Report

Embattled Indian edtech start-up Byju's, which is caught in what many see as a governance crisis, may not renew its endorsement deal with Bollywood actor Shah Rukh Khan when it ends in September, according to a media report.

Meanwhile, as the edtech platform is in serious trouble, Shah Rukh Khan's team is also hesitant to continue the association with the brand, an Economic Times report said, citing one of the people aware of the matter.

The actor's association with the edtech platform began in 2017. The Indian edtech start-up had signed up the Bollywood actor for an annual fee of close to Rs 4 crore.

This is not the first time the association between Khan and the start-up has taken a hit. Earlier in April, a district consumer disputes redressal commission in Madhya Pradesh had fined Byju's and the Pathaan star Rs 50,000 each "for not meeting teaching standards and false ads". In 2021, when the controversy involving Khan's son Aryan erupted, Byju's had halted its advertisements with Khan.

Once counted among India's most successful start-ups, Byju's lost its board members representing three global investors - Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative - and auditor Deloitte.

While the board members did not give a reason for stepping down, Deloitte said it was severing ties with Byju's over delays in disclosing some financial statements. The company has also been raided over suspected violations of foreign exchange laws.

Amid this, the Board of Control for Cricket in India (BCCI) officially named fantasy sports platform Dream11 as Team India’s lead sponsor. With this, Dream11 has replaced Byju's as the lead sponsor. The gaming platform penned down the deal with the world's richest cricket board for a period of three years for an undisclosed amount which is expected to be lesser than the previous deal.  

Co-founder and CEO of Byju's, Byju Raveendran, reassured his employees during a townhall and said that he was optimistic about the future and that “the best of Byju's is yet to come”. Raveendran also said that the company has “not come this far, only to come this far”.

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