A group of Byju’s investors, including Prosus Ventures and Peak XV Partners, have voted to remove the founder and chief executive Byju Raveendran in an extraordinary turn of events for the Indian edtech startup. The decision was made at an emergency general meeting, where participating shareholders also passed a resolution to reconstitute Byju’s board.
Key Takeaway
A group of Byju’s investors, including Prosus Ventures and Peak XV Partners, have voted to remove founder and CEO Byju Raveendran, citing governance and financial concerns. The decision was made at an emergency general meeting, and a separate lawsuit has been filed to halt the rights issue.
Investors Take Action
At the Extraordinary General Meeting, shareholders voted to change the leadership at Byju’s and reconstitute the board, citing governance, financial mismanagement, and compliance issues. Byju’s founder and other board members did not attend the meeting. The shareholder group, including significant investors, expressed confidence in their position and stated that they would present the outcome to the Karnataka High Court in accordance with due process.
Lawsuit Filed
Additionally, four investors representing about 25% ownership in Byju’s filed a suit at the National Company Law Tribunal to halt the rights issue. This move comes after more than a year of unrest among some of Byju’s largest investors, who have raised concerns about accountability at the $22 billion startup.
Byju’s Response
In response to the resolutions passed at the EGM, Byju’s questioned their legitimacy, stating that only a “small cohort of select shareholders” attended the meeting and deemed their decisions “invalid and ineffective.” The company, which has raised over $5 billion to date, has faced challenges in its attempts to go public and secure new funding.
