Edtech firm Byju’s is unlikely to renew its endorsement contract with actor Shah Rukh Khan when it ends in September 2023, according to a report.
“With the ed-tech platform in serious trouble, Shah Rukh’s team is also hesitant to continue the association with the brand,” an unnamed source told the Economic Times.
This is not the first time Byju’s association with Khan has invited trouble. In May, the District Consumer Disputes Redressal Commission in Indore, Madhya Pradesh, issued an order against a staffer of ed-tech firm Byju’s and film superstar Shah Rukh Khan for alleged “fraudulent behavior” and “unfair trade practice” on the complaint of a woman who enrolled for coaching to become an Indian Administrative Service (IAS) officer.
The aspirant also alleged she was lured into the course through false and misleading online advertisements on behalf of Byju’s competitors, adding that she was influenced by an advertisement featuring Shah Rukh Khan.
Recently, the Board of Control for Cricket in India (BCCI) announced that the fantasy gaming platform Dream11 has replaced Byju’s as the next lead sponsor for Team India. The edtech giant was paying Rs 5.5 crore for each bilateral match, and Byju’s had agreed to a total payment of $55 million (~Rs 440 crore).
The edtech company has faced multiple setbacks over the past year, starting with multiple rounds of layoffs in which thousands of employees have been let go.
The Enforcement Directorate (ED) raided the offices of Byju’s CEO Raveendran under the Foreign Exchange Management Act (FEMA) for allegedly receiving Rs 28,000 crore worth of foreign direct investment (FDI) between 2011 and 2023.
This has led to high-profile board exits, multiple valuation cuts, delayed financial results, and even an ongoing legal battle over a $1.2 billion term loan.
Representatives of three key investors of the edtech firm, Peak XV Partners (formerly Sequoia Capital India), Prosus (formerly Naspers), and Chan Zuckerberg Initiative, confirmed their resignations from the company’s board last month.
However, Byju’s CEO Byju Raveendran assured employees that the “best is yet to come” for Byju’s.
Read more: Byju’s recent trouble with ED searches, complaints against advertising; Brand gone bad?