Edtech start-up Byju's has announced the appointment of former State Bank of India (SBI) chairman Rajnish Kumar and ex-CFO of Infosys Mohandas Pai to its advisory council.

This move comes after the startup’s three key investors–Peak XV Partners, Prosus and Chan Zuckerberg Initiative–resigned from the board, raising concerns about governance practices. The CEO Raveendran and co-founders Divya Gokulnath and Riju Ravindran also form part of the board members.

Last month, Pai told news agency Reuters in an interview that the startup – once India's most valued at $22 billion – had not paid enough attention to governance.

Pai is one of the edtech startup's early investors. 

Rajnish Kumar said, "My discussions with Byju and Divya (Gokulnath) convinced me that they are dedicating sincere efforts to steer a course correction of the company's governance structure.”

Byju's was once valued at $22 billion but now faces scrutiny over governance issues, prompting auditors and board members representing investors to step down.

The company's auditor Deloitte, as well as representatives from Peak XV, Prosus, and the Chan Zuckerberg Initiative, resigned in June after Byju's failed to submit its financial documents for fiscal year 2022.

The Ministry of Corporate Affairs has ordered an inspection into the embattled edtech startup Byju's account books and has sought a report in six weeks.

Based on the findings, the ministry will decide if the matter needs to be escalated to the Serious Fraud Investigation Office (SFIO), which is part of the MCA, Bloomberg reported, citing people familiar with the matter.