The trouble keeps mounting for the Edtech platform Byju as a consortium of key shareholders, holding over 30 per cent stake in it, issued a notice to the embattled edtech firm, calling for an extraordinary general meeting (EGM) to address persistent issues, including a proposed change of management at the firm.
Aa per the reports, these shareholders will vote in an attempt to alter the company’s existing board, which includes asking Byju Raveendran to step down as chief executive officer (CEO) and relinquish his operational role at the firm.
In accordance with the rights granted to shareholders under the Companies Act, 2013, a notice was issued to Byju’s parent firm, Think & Learn Private Limited (T&L), requesting an EGM to address persistent issues relating to corporate governance, mismanagement, and compliance.
This request is supported by a consortium of T&L shareholders and follows earlier notices of requisition sent to the T&L board of directors in July and December 2023.
“The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement, and compliance issues; the reconstitution of the board of directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the company,” the investor group said in a statement.
Investors have been urging Byju Raveendran to step aside from the operational role.
They said they have been flagging the persistent issues since the resignation from the Board in June 2023 of directors nominated by Prosus and some other shareholders.
“While we are grateful for the efforts of the independent advisory council in addressing some of the looming challenges facing T&L, we are deeply concerned about the future stability of the company under its current leadership and with the current constitution of the board,” stated the group of shareholders.
Notably, the current board of Byju’s parent, Think and Learn, include Raveendran, his wife and Byju’s co-founder Divya Gokulnath and his brother Riju Ravindran.
Recently, Byju’s kicked off a USD 200 million rights issue to raise funds from its existing investors, starting from January 29.
The edtech major will see a post-money valuation of USD 230-250 million, which is significantly lower than the company’s last funding round which happened at a valuation of USD 22 billion.