General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative, have expressed the need for a management change
Major shareholders, including General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative, are reportedly advocating for a management change at Think and Learn, the parent company of BYJU's, according to sources cited by Mint. The shareholders are expressing concerns and pushing for a shift in leadership amidst challenges faced by the edtech company.
The shareholders are calling for the removal of co-founder and CEO Byju Raveendran. A notice has been signed 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.
"The notice was sent after the company failed to act on an EGM requisition notice sent first in July and then in December," the report cited a person who is aware of the development.
The investor consortium has released a statement, stating that they are issuing the Extraordinary General Meeting (EGM) notice in the best interest of the company and its shareholders. The proposed resolutions for the EGM aim to address governance, financial mismanagement, and compliance issues.
Additionally, the consortium is 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 with the intention of addressing the challenges and improving the overall situation of the company.
Edtech firm Byju, which is facing a financial crisis, has made another attempt to raise funds. The company will raise $200 million through a rights issue. These rights issues have been issued from January 29, which will run for the next month.
Raveendran said in a statement that the money raised will be used to meet the liabilities of the borrowers and the operational needs of the company.
Other the other hand, the company’s results were released after a delay of almost 22 months, the operational loss is continuously increasing in the financial year 2021-22. It had a loss of Rs 8245 crore in the financial year 2022. The loss in FY 2021 was Rs 4564 crore. The total revenue of the company was Rs 5298 crore, which was Rs 2428 crore in the year 2021.