Byju’s, an edtech major, has appointed Ajay Goel, former deputy CFO of Vedanta Resources, as its new chief financial officer (CFO). Goel brings about two decades of  experience in senior positions at firms including Diageo and GE (General Electric). 

He joins Byju’s as the firm renegotiates conditions for its $1.2 billion term loan B and ahead of filing its fiscal year 2022 (FY22) financials. Byju’s, valued at $22 billion, has come under scrutiny for delayed reporting of earnings and its overall business practices including mis-selling courses and the way it recognises revenues. 

Last month, BlackRock, one of its investors, marked down the value of its holdings in Byju’s by nearly 50 per cent, indicating stress within the company and the tech industry as a whole.

Goel’s appointment is said to be significant as Byju’s is planning another fundraising round through convertible notes and has discussed raising funds with existing investors, sovereign funds and pension funds. No valuation is typically ascribed to a company when funds are raised through convertible notes. Investors who participate in the round receive a discount in valuation when the company raises new equity funding or if there is a liquidity event, such as an initial public offering.

“With his extensive experience and diverse skill-set, Ajay is the ideal candidate to take on the role of chief financial officer as we continue to chart the course of sustainable growth in this exciting new phase. His strategic thinking and financial acumen will be instrumental in helping us create even more value for our stakeholders,” said Byju Raveendran, chief executive officer (CEO) and founder of Byju’s.

Byju’s has been seeking to refinance its $1.2 billion term loan B at a higher rate due to delays in publishing FY21 and FY22 results, which triggered lenders to recall the loans. As Goel steps into his role, he will work closely with Byju’s senior leadership on strategy development, capital planning and financial analysis.