As many as six shareholders of Byju’s parent company Think and Learn Private Limited have now moved a resolution to oust the founders from having control over the ed-tech firm amid the financial crisis, reported PTI citing sources.
Byju’s shareholders have moved a resolution seeking the ouster of the founders of the company, including CEO Byju Raveendran.
Investors Urged Consideration To Oust Founders
The investors led by Dutch investment firm Prosus in the EGM notice have requested the resolution of the outstanding governance, financial mismanagement and compliance issues and the reconstitution of the Board of Directors.
Shareholders Pushed Removal Of Co-Founder
The shareholders pushed for the removal of co-founder and chief executive officer Byju Raveendran from his post at the earliest, reported Mint quoting sources. “The notice was sent after the company failed to act on an EGM requisition notice sent first in July and then in December,” a source said.
Byju’s Financial Crisis Intensifies
Ed-tech platform Byju’s had reached its peak valuation of $22 billion in March 2022, when the demand for online education was high due to the pandemic. However, the company failed to cope up with its liabilities, with the pressure from lenders increasing.
Lenders to Byju’s filed an insolvency petition last week after the startup missed payment on a $1.2 billion loan. The firm is seeking $200 million by selling new stock to shareholders, it said on Monday. Such a move would slash its value by more than 90%.
BYJU recently declared its financial results after a delay of about 22 months in which it reported a widening of operational loss to ₹6,679 crore in FY22, mainly due to losses incurred by subsidiaries White Hat Jr and Osmo.