Edtech major Byju’s continues to battle senior leadership exits as Cherian Thomas, head of Byju’s international business, resigned last week to join US mobile gaming company Impending.
Thomas was one of the first global employees at Byju’s and played a key role in the company’s international expansion over the past six years.
His departure comes at a tumultuous time for the edtech leader amid mounting losses, job cuts, and a funding slowdown.
Key Facts About Cherian Thomas
Cherian Thomas joined Byju’s in 2017 as its first global employee and went on to build the international business from the ground up.
As Senior Vice President of Byju’s international business, Thomas helped drive the company’s overseas acquisitions and expansion strategy.
He led Byju’s high-profile acquisition of US-based educational games developer Osmo in 2019, its first major overseas takeover.
With Thomas at the helm, Byju’s aggressively expanded into international markets through strategic acquisitions across geographies.
After nearly six years at Byju’s, Thomas completed his notice period last week and exited to join Impending Inc. as its new CEO.
California-based Impending is the developer of popular mobile games like Heads Up, Clear, and Classics which have collectively garnered over 350 million downloads worldwide.
Byju’s Departing CEO Thomas’ Track Record in Startups
Byju’s was not Thomas’ first stint with an edtech startup. Prior to joining Byju’s in 2017, he co-founded the food media platform Cucumbertown.
The VC-backed startup was acquired by Japanese company Cookpad in 2016 in one of the first exits in the food-tech space.
Thomas has also been associated with mobile gaming firm Zynga in the past as one of its earliest employees. His startup experience made him a good fit for spearheading Byju’s global ambitions.
Byju’s Global Growth Trajectory
Thomas joined Byju’s when it was still predominantly focused on growing its presence in the Indian market.
But founder Byju Raveendran had global goals and was keen to take his edtech brand international.
Thomas played a pivotal role in identifying strategic acquisition targets across geographies to fuel Byju’s international expansion.
Under Thomas, Byju’s acquired brands like Tynker, WhiteHat Jr, Epic, Osmo, Great Learning etc. to bulk up its global portfolio of offerings.
Byju’s currently claims a presence across 120 countries with 100 million students on its learning platform. Its acquisitions have been a key enabler for global growth.
But the acquisition-led expansion has come at a huge cost, contributing to Byju’s surging losses which are estimated to cross ₹5,000 crore for FY22.
Byju’s Recent Challenges
Thomas’ exit caps a turbulent period for Byju’s which has seen its startup fairy tale narrative come under pressure in 2022.
After tripling its losses to ₹4,500 crore in FY21, BYJU expects losses to mushroom further in FY22 due to its acquisition spree.
To cut costs and losses, Byju’s announced job cuts earlier this year which could impact nearly 2,500 employees as it downsizes its sales team.
Byju’s finances have deteriorated to the extent that it delayed payments for its $1 billion acquisition of Aakash Educational Services. Founder Byju Raveendran had to make a personal capital infusion.
The delays in finalizing Byju’s FY21 financial statements have also cast a shadow over its governance standards.
Further, the funding slowdown has derailed Byju’s ambitions to go public. Its $1 billion IPO plan has now been pushed beyond 2025 as per the latest estimates.
Thomas’ departure adds to Byju’s challenges when it desperately needs experienced hands at the helm to steer it through choppy waters.
Leadership Crisis at Byju’s
Byju’s has already lost several top leaders in 2022, including Mrinal Mohit, Divya Gokulnath, and COO Anita Kishore.
Now, the sudden exit of Thomas, who shaped its international business creates fresh uncertainty.
Byju’s cannot afford an exodus of top brass at a time when it needs strategic thinking and mature hands to claw back from the brink.
Having managers like Thomas ensures continuity of organizational culture, governance standards, and growth momentum. His departure leaves a void.
Byju’s needs major course correction in 2023
Despite billion-dollar funding, 2022 exposed flaws in Byju’s soaring valuation and questionable acquisition strategy.
In 2023, Byju’s urgently needs to rectify governance gaps, optimize costs, and achieve profitability by pulling back on indiscriminate acquisition sprees.
This turnaround requires managers with institutional know-how and financial prudence. However, the loss of several key decision-makers poses a dilemma for Byju’s.
Key Takeaways
The resignation of executive Cherian Thomas continues the leadership exodus plaguing Byju’s in 2022.
Thomas was the architect of Byju’s global expansion and his exit leaves big shoes to fill when the company can least afford instability.
His move to Impending caps a nightmarish year for Byju’s marred by surging losses, alleged governance issues, and a funding crunch.
With its startup glory fading, Byju’s needs credible leadership at the helm in 2023 to revive market trust and optimism. But worsening attrition at the top remains a cause for concern.
