A group of major investors in Byju’s has taken the unprecedented step of calling for an extraordinary general meeting to instigate a change in leadership at the edtech company. This move comes in the wake of Byju’s recent rights issue, which was launched at a pre-money valuation of $25 million.
Key Takeaway
A consortium of major investors in Byju’s has called for an extraordinary general meeting to address persistent issues and advocate for a change in leadership, citing concerns related to governance, financial mismanagement, and compliance.
Investor Concerns
The consortium of investors has expressed their concerns about what they describe as persistent issues at Byju’s. These issues reportedly include governance, financial mismanagement, and compliance matters. The investors have been in discussions with the company for several months, and their efforts culminated in the decision to call for the extraordinary general meeting.
EGM Resolutions
The resolutions proposed for the EGM encompass the resolution of governance, financial mismanagement, and compliance issues. Additionally, the investors are seeking the reconstitution of the Board of Directors to ensure it is no longer controlled by the founders of T&L. They are also advocating for a change in the company’s leadership.
Investor Consortium
Notable entities such as Prosus, General Atlantic, Peak XV, Chan Zuckerberg Initiative, Owl, and Sofina are part of the consortium that is pushing for the EGM, according to a source familiar with the situation.
Byju’s Rights Issue
Byju’s, which was previously the most valuable edtech company globally, recently underwent a significant valuation adjustment. The company reduced its valuation ask by 99% in the rights issue, aiming to raise $200 million to address its liabilities and operational costs.
Investor Commitment
The investors have emphasized their commitment to the Indian startup sector and their dedication to serving the long-term interests of the companies in which they invest and their stakeholders. They have underscored their belief in the transformative role of educational technology in India and have expressed their intention to collaborate with other shareholders and government authorities to safeguard the long-term interests of Byju’s and its stakeholders.
