The contract period which started in 2017, is supposedly going to end this September
BYJU’S would reportedly pay an annual fee of nearly INR 4 Cr to Khan as per the contract
The rough patch reportedly attributes to the serious trouble that the edtech giant has got itself into
Bollywood superstar Shah Rukh Khan, reportedly, is not going to renew his endorsement contract with BYJU’S, which adds to the discomfort of the edtech giant that is staggering with multiple challenges currently.
The contract period which started in 2017, is supposedly going to end this September.
According to an Economic Times report, BYJU’S would pay an annual fee of nearly INR 4 Cr to the superstar as per the contract.
The report quoted a source saying, “With the ed-tech platform in serious trouble, Shah Rukh’s team is also hesitant to continue the association with the brand.”
This is not the first rough patch that the association of the edtech major and Khan has witnessed. Earlier this year, the District Consumer Disputes Redressal Commission in Indore reportedly accused Khan and BYJU’S of fraudulent behaviour for taking admission fees from an IAS aspirant but no coaching was provided. The commission asked the edtech firm to return fees along with compensation.
BYJU’S has been in the news recently for all the wrong reasons. From job cuts to delaying financial filings, the startup fraternity has seen it all from the edtech major.
In June, BYJU’S started the process of laying off more than 1000 employees across India grappling with funding crunch and declining revenue graph issues.
Further, allegations against the startup by the employees were that without any prior notice, the official email ids were blocked and they were told to surrender their identity cards.
In addition to this, BYJU’S also delayed the PF payment to the EPFO accounts of their existing employees. According to EPFO data accessed by Inc42, since October last year, the edtech giant had not been paying the dues to the employee account.
However, after the reports surfaced, the edtech giant transferred the PF amount for the period of August 2022 to May 2023. Reportedly, BYJU’S transferred about NR 123.1 Cr to the EPFO for the given period.