Beleaguered edtech firm Byju’s said on Friday that its investors who are calling for the ouster of founder and CEO Byju Raveendran have no voting rights to bring about a change of leadership. This comes after a group of shareholders called for Raveendran’s removal amid the unprecedented crisis faced by the edtech firm.
Shareholders expressed deep concern over the company's future stability under the current leadership. The statement was released by Prosus Ventures, a 9 per cent stakeholder in Byju’s, claiming support from unnamed fellow shareholders.
The investors requested the meeting to address governance, management, compliance issues and to reconstitute the board so that it is no longer controlled by the founders.
Byju's faced continued problems last year after Deloitte resigned as its auditor, citing the board's failure to provide necessary documents. Byju’s also delayed the financial statements for the year ending March 31, 2022. Board members representing Peak XV, Prosus, and Chan Zuckerberg Initiative resigned from Byju's board last year.
Raveendran, in a letter to shareholders, mentioned that a quick capital raise would provide the company with the resources needed to rebuild and scale. He stated that it will be used for business operations, managing obligations, and increasing sustainability. Byju’s valuation has now fallen to between $1 billion and $3 billion, according to some investors' estimates.
Meanwhile, Byju’s has delayed salaries of its employees for the month of January, as per a report in Moneycontrol. Byju's senior management confirmed to the news site a "slight delay in salary disbursements this month because of the artificially induced crisis by these select investors."
(With Reuters inputs)
Also read: Byju's tells employees salary delay an 'artificially induced crisis by select investors': Report