Byju's Troubles: Investors issue EGM notice, seek to fire founders and CEO Byju Raveendran
Byju's investors are seeking to remove the company's leadership led by Byju Raveendran, saying they are ‘deeply concerned’ about future stability under the current leadership.
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Troubles keep mounting for edtech major Byju's. A clutch of Byju's investors are seeking to remove the company's leadership led by Byju Raveendran, saying they are ‘deeply concerned’ about future stability under the current leadership.
The investors are seeking an extraordinary general meeting (EGM) to adopt resolutions on outstanding governance, financial mismanagement and compliance issues; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of Byju's parent company Think & Learn; and a change in leadership of the company.
At present, the company's board consists of founder and CEO Byju Raveendran himself, his co-founder and wife Divya Gokulnath, and his brother Riju Ravindran, following the departure of other members last year, Moneycontrol reported, pointing to sources who said the statement is on behalf of Prosus, Peak XV, Sofina, Lightspeed and General Atlantic.
Here's the full statement issued on behalf of a number of major investors:
“As investors with a track-record in supporting the Indian start-up sector over many years, we are strongly committed to serving the long-term interests of the companies in which we invest and their stakeholders.
With this in mind, pursuant to the rights granted to shareholders under the Companies Act, 2013, a notice has [today] been issued to Think & Learn Private Limited (T&L) shareholders requesting an extraordinary general meeting (EGM) to address persistent issues. The request for an EGM is supported by a consortium of T&L shareholders and follows earlier notices of requisition sent to the T&L Board of Directors in July and December 2023, which were disregarded.
The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement and compliance issues; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the Company.
The issuance of this EGM notice follows many months of continued efforts by shareholders to engage with the Company to address persistent issues relating to corporate governance, mismanagement and compliance. These efforts have been ongoing following the resignation from the Board in June 2023 of directors nominated by Prosus and other shareholders.
While we are grateful for the efforts of the independent advisory council in addressing some of the looming challenges facing T&L, we are deeply concerned about the future stability of the Company under its current leadership and with the current constitution of the Board.
We believe wholeheartedly in India and in the transformative role that education technology can play in improving teaching and learning. We also continue to believe in the role and contribution of BYJU’s. As shareholders, we will continue to assert our rights, in collaboration with other shareholders and government authorities to safeguard the long-term interests of the Company and its stakeholders."
