Deepak Mehrotra Resigns as CEO of Aakash Educational Services Limited

Deepak Mehrotra, the Managing Director and CEO of Aakash Educational Services Limited, has stepped down from his role, as reported by sources familiar with the matter. This resignation comes 16 months after his appointment in April 2024. According to insider information, Mehrotra has formally submitted his resignation and is currently in his notice period.

While there has been no official statement from Mehrotra, a recent post on his LinkedIn mentioned that over the past 481 days of rebuilding the company, he has given his all but found the experience rewarding. He highlighted travels across nearly 70 branches to engage with employees, focusing on their aspirations and fostering trust. Emphasis has been on strengthening faith in leadership, developing new business models, and promoting technology adoption.

In response to inquiries from Startup Superb, a spokesperson for Aakash commented that, at this time, they would prefer not to make any statements. Efforts to reach Mehrotra for a response have also been initiated.

Strategic Direction under Mehrotra

Upon joining Aakash, Mehrotra was entrusted with the task of guiding the company through its Aakash 2.0 strategy, which aims at transforming the business model, consolidating roles, and aggressively seeking new talent.

Recent Developments and Layoffs

The company faced significant changes recently, including layoffs in September, where approximately 80 to 100 employees were let go. This marked the first substantial job reductions since Byju’s acquisition of Aakash for nearly $1 billion in 2021.

Startup Superb previously reported last year that Mehrotra’s annual salary would be Rs 5 crore, effective from the last fiscal year (FY25). Additionally, Aakash granted him employee stock ownership plans (ESOPs) valued at Rs 25 crore, which are set to vest over four years starting from April 2025.

Internal Challenges

This leadership transition occurs amidst ongoing internal strife within Aakash Educational Services Limited (AESL), as the founding Chaudhry family has been resistant to full integration. In March of the previous year, both entities retracted their merger petition, choosing to operate separately under the Think and Learn brand.

Aakash has yet to submit its annual report for FY24 and FY25.