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Investors Urge Financial Transparency at Byju's AGM, Raveendran Faces Strong Reaction: Report

During the AGM, Byju's investors advised Byju Raveendran that for the company's support, it's crucial to communicate internal developments transparently to shareholders

Investors Urge Financial Transparency at Byju's AGM, Raveendran Faces Strong Reaction: Report
Byju Raveendran, chief executive officer, Byjus

Outlook Start-Up Desk

POSTED ON December 22, 2023 4:52 PM

Byju's founder Byju Ravendran received a strong reaction from investors while attending the company's Annual General Meeting (AGM). People attending the AGM told The Economic Times that investors advised maintaining financial transparency in the company.   

The report added quoting an investor that the investors made it clear that the company can be supported only if the things happening inside it are communicated to the shareholders and investors. The company will have to demonstrate this confidence, the report added.   

According to insiders, the AGM held on Wednesday lasted 3 hours.   

The company's financial report for 2022 and the resolution to re-appoint auditor BDO were passed in the AGM. 

Byjus is facing tough days on almost every front. Parent company Think & Learn has registered around Rs 800 crore in FY22 on the revenue of more than Rs 5,000 crore, the report added citing the person who briefed numbers during the meeting. 

Reports suggest that Byju Raveendran, the founder of Byju's, facing financial challenges, recently mortgaged two houses in Bengaluru, raising around Rs 100 crore. He utilised this amount to pay salaries to his employees. Additionally, the valuation of Byju's, a prominent tech company, has significantly dropped to less than three billion dollars from $22 billion last year, marking an 85 per cent decline.    

The Enforcement Directorate (ED) has also issued a notice, accusing Byju's of Foreign Exchange Management Act (FEMA) violations exceeding Rs 9,000 crore. FEMA, established in 1999, regulates the flow of foreign currency.   

Byju's is also accused of defaulting on payments of Rs 158 crore. BCCI has filed a bankruptcy application in the National Company Law Tribunal (NCLT) in Bengaluru under Section 9 of the Insolvency and Bankruptcy Code, 2016. 

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