Byju Raveendran, the founder of the popular edtech platform Byju’s, has reassured employees that he remains the CEO of the company, countering rumors of his dismissal. This comes after a shareholder group, including Prosus Ventures and Peak XV Ventures, moved to remove him in an emergency general meeting.
Key Takeaway
Byju Raveendran, the CEO of Byju’s, refutes claims of his removal by shareholders, citing violations of essential local rules and lack of proper quorum at the meeting.
Rumors Dismissed
Raveendran addressed the situation in a 758-word letter, emphasizing that the shareholders’ actions violated crucial local regulations. He highlighted that the extraordinary general meeting lacked the required quorum and did not secure majority support for the proposed resolutions. Raveendran stressed that the meeting did not adhere to established legal procedures, with only 35 of Byju’s 170 shareholders in attendance, representing approximately 45% ownership in the company.
Stake in the Company
The shareholder group’s resolutions aimed to address governance, compliance issues, financial mismanagement, board reconstitution, and a change in leadership to reduce control by the founders of T&L. The outcome of this dispute holds significant implications for the future of the Bengaluru-based startup, once valued as the country’s most valuable.
Financial Challenges
Byju’s, which has been seeking new funding for over a year, recently initiated a rights issue to raise approximately $200 million. This move has reset the startup’s valuation from $22 billion to about $25 million. Raveendran expressed confidence in the success of the rights issue, noting the overwhelming response it has received.
Media Conflict
Raveendran also addressed the conflicting reports in the media, attributing them to the minority shareholders’ intent to spread misinformation. He affirmed the company’s decision not to engage in a media war, expressing confidence that the shareholders’ actions will ultimately fail.
