Byju Raveendran stated in an internal letter to shareholders that to ensure transparency regarding the usage of funds raised through the rights issue, the company will appoint a third-party agency to monitor it.
Byju's efforts to raise funds of around $200 million have been fully subscribed, founder and CEO of the edtech's parent firm Think and Learn, Byju Raveendran said in a letter to shareholders on Wednesday.
"Our rights issue is fully subscribed and my gratitude to my shareholders remains strong. But my benchmark of success is the participation of all shareholders in the rights issue. We have built this Company together and I want us all to participate in this renewed mission. Your initial investment laid the foundation for our journey and this rights issue will help preserve and build greater value for all shareholders," the founder said in the letter.
"This $200 million raise will give our Company the capital it needs to ensure that we can take care of the current liabilities and also provide sufficient growth capital to get us back to our former glory," Raveendran further added.
A group of major investors in the company has given notice to remove Raveendran and his family members, who currently head the board of Think and Learn. According to reports, shareholders will vote on the fate of board members on Friday. People familiar with the matter expect that the resolution will be against Raveendran and his family members.
Raveendran and his family are the largest shareholders in the company, with a 26 percent stake. On the other hand, the investors who have given notice hold a 25 percent stake in the company.
Raveendran further added that to ensure transparency with regard to the usage of funds raised through the rights issue, he will appoint a third-party agency to monitor the same. This agency will report to all shareholders on a quarterly basis, within 45 days from the end of the quarter, along with commentary from the Board.
According to media reports, he targeted investors who have invoked the resolution against the board, stating, "A few vested interests are misrepresenting our relationship as adversarial. Let me be unequivocal in stating that such narratives could not be further from the truth."
Raveendran said that the negativity against the company has affected perception, but it has witnessed continued growth in consumer belief.
Since Friday, the Paytm stock has experienced a rebound, surging by over 21 per cent from Thursday's closing price of Rs 325.
Non-compliance with regulations by startups and SMEs is being taken seriously. This underscores the importance of adhering to rules to maintain reputation and ensure business continuity.
Vidyut will now offer EV insurance, Lifecycle Management, and EV resale and devote the fresh funds to scale its offering to the EV ecosystem.
