Bollywood superstar Shah Rukh Khan is reportedly not going to renew his endorsement contract with edtech giant BYJU’S, adding to the discomfort of the company that is already grappling with multiple challenges. The contract, which began in 2017, is set to end this September.
According to an Economic Times report, BYJU’S paid an annual fee of nearly INR 4 Cr to Shah Rukh Khan as per the contract. However, with the edtech platform facing serious trouble, Khan’s team is reportedly hesitant to continue the association with the brand.
This isn’t the first rough patch that BYJU’S and Shah Rukh Khan have encountered. Earlier this year, the District Consumer Disputes Redressal Commission in Indore accused Khan and BYJU’S of fraudulent behavior for accepting admission fees from an IAS aspirant without providing coaching. The commission ordered the edtech firm to refund the fees along with compensation.
BYJU’S has recently made headlines for various negative reasons. The company has been cutting jobs and experiencing delays in financial filings, adding to the concerns surrounding the edtech major. In June, BYJU’S began laying off more than 1000 employees across India due to funding issues and declining revenues.
Furthermore, employees alleged that the company blocked official email IDs without prior notice and asked them to surrender their identity cards. Additionally, BYJU’S has also delayed the Provident Fund (PF) payments to the Employee Provident Fund Organisation (EPFO) accounts of its existing employees. EPFO data accessed by Inc42 revealed that the edtech giant had not been fulfilling its dues to the employee accounts since October of the previous year.
However, following the surfacing of these reports, BYJU’S transferred the PF amount for the period of August 2022 to May 2023. It is reported that BYJU’S transferred approximately NR 123.1 Cr to the EPFO for the given period.
With Shah Rukh Khan’s reported decision not to renew his endorsement contract, BYJU’S faces another setback in an already challenging period for the edtech giant. The company will need to navigate these issues and address the concerns raised to regain its footing in the highly competitive edtech market.
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