BYJU's stated that the company is committed to having a dialogue, even as the founders and leadership work on finding ways to address its increasing obligations.
Think & Learn (TLPL), parent company of the Bengaluru-based edtech BYJU’s, responded to the notice given by the company's major shareholders for the removal of the founders. The company said that the shareholder's agreement does not give them the right to vote on CEO or management change.
“Think & Learn Private Limited, the parent of BYJU’S, has noted with sorrow, statements from a select few investors calling for an extraordinary general meeting (EGM) to replace founder and group CEO Byju Raveendran. Under these unfortunate circumstances, we would emphasize that the shareholder's agreement does not give them the right to vote on CEO or management change,” it said in a statement.
According to reports on Thursday, major shareholders such as General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg wrote a letter to the company expressing the need to change the founders. The investors are advocating for a management change at the company.
The company also stated that it has received a positive response regarding the proposed $200 million rights issue. "The company is pleased with the support from a broad spectrum of its shareholders," it added.
It further added that the criticality of the rights issue has been shared with all shareholders and the company has received encouraging support from a wide section of its shareholders.
“Byju Raveendran and his leadership team have kept TLPL afloat after three investors left the company’s board last year, triggering a broader crisis. The company, along with the advisory board consisting of Rajneesh Kumar and Mohandas Pai, constituted a working group with the investors to find a constructive way forward,” the statement added.
TLPL will remain on the path of dialogue even as the founders and the leadership find ways to meet the company’s mounting obligations, including salary payouts. We want to re-emphasize that the company has not had any external investor funding for nearly two years apart from the founder infusing over $1 billion — a reason why it launched a rights issue as a quick and equitable way to raise money, it further added.
The company has claimed that the leadership has updated the working group on all crucial matters, including ongoing business restructuring, financial position, and audits.
According to reports, the investors have signed a notice to initiate an extraordinary general meeting where proposals for both a management change and a restructuring of the company's board will be put forward.
Additionally, the investors are seeking a reconstitution of the Board of Directors to reduce founder control and a change in the company's leadership. These measures are put forth to address the challenges and improve the overall situation of the company.