Discover the shocking turn of events at Byju’s as investors revolt against BYJU’S CEO and founder! Get the inside scoop on the power struggle rocking India’s leading ed-tech company and what it means for its future.
Byju’s CEO To Exit?
Byju’s, once India’s most valuable startup in the ed-tech space, is facing internal turmoil as a group of investors takes action to remove its founder and CEO, Byju Raveendran. This move, along with a legal challenge against the leadership and a rights issue, marks a surreal moment for the company.
At an emergency general meeting (EGM), major investors like Prosus Ventures and Peak XV Partners voted to remove Byju Raveendran and reconstitute the company’s board. The participating shareholders, collectively owning over 60% of Byju’s, passed resolutions aimed at addressing governance and financial issues.
Simultaneously, a group of investors representing about 25% ownership filed a suit at the National Company Law Tribunal to halt the rights issue. This decision follows more than a year of unrest among investors who accuse Byju’s of lacking accountability despite its status as a multi-billion-dollar startup.
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Byju’s Response
In response, Byju’s questioned the legitimacy of the resolutions passed at the EGM, claiming that only a small group of shareholders attended and their decisions were invalid. Byju’s, which has raised substantial funds and made significant acquisitions, faced setbacks in its IPO plans and subsequent funding efforts.
The startup, seeking new funding, launched a rights issue to raise $200 million at a discounted rate. Raveendran urged existing investors to participate, citing the need to prevent permanent value erosion. However, the company’s financial difficulties, including a technical default on a term loan, have complicated its fundraising efforts.
Byju’s, once hailed as a success story in the Indian startup ecosystem, is now grappling with internal conflicts and legal disputes. The outcome of these challenges will not only shape the future leadership and governance of the company but also have significant implications for its financial stability and growth prospects.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and The Times of India have contributed to the above report
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