Byju’s, a company that provides education technology (edtech) services, is facing some serious problems. The major investors in the company have expressed their worries about the current leadership and the way the company is being run. They want to make important changes, such as restructuring the company’s board and replacing the current leaders.
Byjus Major investors express worries about Raveendran leadership
The investors have formally requested a special meeting, called an extraordinary general meeting (EGM), to discuss and address these ongoing issues. They have raised concerns about the stability of the company under the current leadership and the way the board is set up.
In the meeting, the investors plan to propose resolutions to tackle governance problems, financial mismanagement, and compliance issues. They also want to change the composition of the board so that it is not controlled solely by the founders of the company. Additionally, they are seeking a change in the company’s leadership.
Image Credit : Byjus
This move comes after previous attempts to address these issues were ignored by the company’s board. The statement was released by Prosus, a major investor with around 9% stake in Byju’s, and is reportedly supported by other significant investors like Sofina and Peak XV.
Byju’s has been going through a tough time recently, facing setbacks and financial challenges. The company recently announced plans to raise $200 million through a rights issue of shares to handle immediate financial obligations and operational costs.
It’s important to note that Byju’s had a valuation of $22 billion in its last funding round in 2022, but its value has since been significantly reduced, with BlackRock valuing it at $1 billion and Prosus NV at under $3 billion.
Byjus Major investors express worries about Raveendran leadership
In summary, the major investors in Byju’s are pushing for changes in leadership and governance due to concerns about the company’s stability and financial management. They have formally requested a special meeting to address these issues and propose resolutions for the company’s improvement.
