Facing financial difficulties, embattled edtech giant Byju's has reportedly suspended its three-year deal with football icon Lionel Messi as a global brand ambassador. The partnership, which began in November 2022, aimed to promote equitable education through Byju's social impact arm, 'Education For All.' The company is currently deliberating whether to terminate the contract prematurely or explore revival options due to a severe cash crunch. Despite the suspension, Byju's has already compensated Messi for the initial year of the deal. The Economic Times first reported on this development.
In November 2022, Byju's proudly announced Messi as the inaugural global brand ambassador for 'Education For All,' aligning with the company's commitment to accessible and affordable education on a global scale. Messi, the Paris Saint-Germain player and captain of the Argentinian team, expressed his alignment with Byju's mission, stating, "I chose to partner with Byju's because their mission to make everyone fall in love with learning perfectly aligns with my values." Despite this setback, Byju's had earlier secured the position of the official sponsor for the FIFA World Cup 2022 in Qatar. Byju’s has not yet issued an official clarification on the report.
Byju’s has also not renewed its endorsement contract with actor Shah Rukh Khan after it ended in mid-2023. This, according to industry executives, was a mutual decision. The worsening financial crisis at Byju’s could see the edtech firm take more decision to cut costs, especially in advertising and marketing.Over the past year, Byju’s has been facing a severe financial crisis amid an ongoing legal battle with lenders over a $1.2 billion term loan. More recently, a group of investors has also launched a campaign to oust the leadership at Byju’s, including Byju Raveendran. However, the founder has issued a statement saying investors do not have the right to vote on management changes.
On Monday, Byju Raveendran also wrote a letter to employees where he stated how difficult it has been to pay salaries to the edtech firm’s employees over the past month."I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve," wrote Byju Raveendran.As it navigates through the financial crisis, Byju's recently announced it is looking to raise $200 million through a rights issue