Byjus has been sponsoring the Indian cricket team’s jersey but the time has come and the brand is considering taking an exit. A top BCCI official confirmed this stating ‘they want to exit Jersey Sponsorship’. Byju’s can exit providing if they provide all the contractual obligations.
“Yes, they have written to us they want to exit Jersey Sponsorship. The matter will be discussed at Apex Council Meeting. They need to comply with all contractual obligations and exit can be taken”, a top BCCI official said
The huge ed-tech brand suddenly extended its deal with the BCCI up to 2023- end for $55 million. Due to the troubles faced by the company, the deal is coming to an exit by March 2023. The original term was to end in March 2022 but with the new deal, Byju’s was paying 10% more than what Oppo did in individual matches.
The Byju’s is currently their costs to cope with the ed-tech services after they got hypergrowth after two years in a row. They had a loss of ₹4,588 crores in FY21. Their revenue was 4% up which was ₹2280 crore. Their promotional and advertising costs jumped to 2,251 crores from ₹899 crores. In June and October of 2022, the company fired over 2,500 employees from Toppr, WhiteHat Jr, and other functions within Byju. Two months back, they laid off 5 percent of the 50,000 employees in various departments.
They’re even planning to lay off 2,500 employees in the next six months for cutting the additional expenses in the product, content, media, and technology departments. They have started to lay off their employees and they’re required to serve a notice period of 15 days, Raveendran sent an apology email to all their employees who were fired.
Besides being the sponsor of the Indian jersey, they are the global sponsor of ICC, the deal which is worth 120-130 crores till the 2023 World Cup in India. They also had a sponsorship tie-up with FIFA World Cup that took place in Qatar, the deal worth $40 million.