Byju's investors rally to seek removal of founder

A consortium of prominent investors in Byju’s is seeking an extraordinary general meeting (EGM). They aim to address critical leadership and governance issues that have surfaced over the past year.

• Investor Concerns and Actions: The investor group, which includes names like Prosus, General Atlantic, and the Chan Zuckerberg Initiative, has expressed concerns over persistent problems at Byju's, underscoring financial mismanagement and compliance failures.

• Significant Valuation Cut: Byju’s valuation plummeted by 99% to a mere $25M pre-money ahead of its rights issue—a stark departure from its $5B raised in previous funding rounds.

• Investors Claim Past Overlooked Requisitions: According to the investors, prior attempts to rectify these issues were ignored, prompting the push for the EGM. This move followed the resignation of key investors from the board, alongside the exit of global auditor Deloitte amidst governance qualms.

• The Founder’s Perspective: Byju Raveendran, the company's founder, acknowledged the situation in a heartfelt letter to stakeholders. He emphasized the founders’ dedication and significant personal investment of $1.1B to sustain the company's mission.

Investors remain firm believers in the potential of educational technology and Byju’s role within the sector. Nonetheless, they are committed to using their rights to ensure the company resolves these urgent issues for its long-term stability and success.