A consortium of investors holding over 30% stake in edtech firm Byju’s has called for an extraordinary general meeting (EGM) on February 24th seeking removal of founder CEO Byju Raveendran and his family members from the board and management. The shareholders have accused Raveendran of financial mismanagement, value erosion and concealing key information.
Founder Family Holds 26% Stake Raveendran and his family collectively own about 26% equity interest in Byju’s. The disgruntled investor group calling the EGM reportedly commands over 30%. They include prominent backers like Prosus, General Atlantic and Owl Ventures who earlier sought better governance.
The investor resolution proposes appointing an interim CEO and reconstituting the company board besides leadership changes. It enumerates a raft of allegations of financial and operational mismanagement against Raveendran to make their case and protect shareholder value.
Large Investor Consortium Allege Misgovernance
The development caps months of growing shareholder discontent over alleged opaque practices and inadequate checks and balances at what was once India’s highest-valued startup.
In their EGM notice, the investors have accused the founder of everything from financial irregularities, concealment of material information, conflict of interest with cricket body BCCI over sponsorship deal to failure to adopt proper audit processes.
The consortium also blamed the management for destroying shareholder wealth via its inability to collect customer dues, resolve loan defaults, address ED probe over foreign funding, clarify Great Learning acquisition terms, etc. amid broader slowdown and job cuts.
