Byju’s investors call to oust founder (update)

Byju Raveendran / Photo credit: Byju’s

Several major backers of Byju’s, the embattled India-based edtech company, have called for a change in leadership at the company along with the reconstitution of the board of directors.

This development comes days after Think & Learn – Byju’s parent firm – said it was looking to raise US$200 million via a rights issue. This would mean a plunge of nearly 99% from the company’s peak valuation of US$22 billion.

Think & Learn has responded stating that the shareholder’s agreement does not give the investors the right to vote on CEO or management change. It said the proposed rights issue is on track and has received “encouraging responses from multiple investors.”

In the notice to the shareholders of Think & Learn, investors had asked for an extraordinary general meeting to resolve outstanding governance, financial mismanagement, and compliance issues at the company.

“We are deeply concerned about the future stability of the company under its current leadership and with the current constitution of the board,” the investors’ statement read. General Atlantic, Prosus, Peak XV, and the Chan Zuckerberg Initiative are some of the top investors in the company.

One of the biggest names in the global edtech space, Byju’s has been under mounting scrutiny over its financials and governance amid a major cash crunch.

See also: The $22b question on Byju’s valuation

Update (Feb. 2, 7 p.m. SGT): This article was updated to include a statement from Think & Learn.