Byju’s Investors Vote to Oust CEO from Troubled Ed-Tech Startup | India Business News

Feb23,2024



Major Byju's shareholders include Process N.V. And Peak Is.
Byju's rejected the proposals, which also sought the removal of Byju Raveendran from the board of the company, founded in 2015, the company said in a statement on Friday.
According to the statement, “The resolutions passed during the recently concluded extraordinary general meeting – which was attended by a small group of select shareholders – are invalid and ineffective.”
A spokesperson for Prosus declined to comment, while Peak did not immediately respond to a request for comment.
The vote sends another clear signal of resentment toward the once-iconic entrepreneur, who had boycotted the meeting. This is an unusual turn in the long-running dispute between some influential people and the company that was once counted among India's most valuable startups. investors This helped control its pre-Covid climb.
The shareholders' decision came after a tumultuous hours-long Zoom call for investors and management on Friday, which several Byju's employees tried to crash, according to two people who participated. Several times during the meeting, unidentified participants tried to disrupt the proceedings with whistles and other loud sounds, the people said, asking not to be identified discussing a private call.
Online-education leader Byju's and its creditors are locked in a prolonged restructuring battle after it missed interest payments on $1.2 billion debt. A unit of the company was put into bankruptcy in the US following the default.
Raveendran, whose journey from tutor to leader of a $22 billion-worth company has enthralled the nation, then turns to charismatic tech entrepreneurs to keep their businesses afloat after expanding too fast during the pandemic. Are taking increasingly desperate steps. Byju's was left out of balance after demand for online tuition went down following the reopening of schools.
Some board members have resigned and Raveendran has mortgaged his house as well as houses owned by his family members to raise funds for staff salaries. It is also selling new stock at a discount of more than 90% to its previous funding round to raise capital.
Raveendran's company is one of many tech startups facing financial or legal troubles. Paytm, the company that popularized online finance across India, is struggling to address the sudden suspension of a key division by the central bank.



Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *