Edtech firms must work out a code of conduct, says TV Mohandas Pai

livemint.com:

Longer talktimes, lower incentives: edtech turns up the heat on its employees Edtech startups have been struggling with falling sales and muted investor sentiment over the past few years. According to data from research platform Tracxn, funding for Indian edtech firms surged from $599 million in 2019 to $4 billion in 2021 as covid forced students to learn from home. However, investment in the sector dropped to about $312 million in 2023, and stands at about $182 million in the first five months of 2024.

Pai also said startups need higher standards of corporate governance, especially once they go public. “Good corporate governance means having independent directors on the board who will ensure that all stakeholders' interests are protected. They matter when the company gets into a crisis," he said.

Pai had joined Byju’s advisory council in July 2023 to bolster corporate governance at the firm. At the time, he said, “Byju (Raveendran) and Divya (Gokulnath) are amongst the most impressive entrepreneurs I have worked with in the startup ecosystem. I see in them the drive to build a successful corporation and to ensure they deliver on their mission." However, Pai declined to comment on the company’s numerous controversies.

Mint reported last month that he and Rajnish Kumar are set to step down from Byju's advisory panel once their tenure ends on 30 June. Also read: Beyond Byju's, GSV Ventures sees promise in India's edtech sector On Wednesday, a majority of Byju’s lenders filed petitions in the US to initiate involuntary Chapter 11 bankruptcy proceedings against three US-based guarantors of a $1.2-billion term loan that edtech firm had taken in 2021. The petitions have been filed against Byju’s reading platform Epic!