Who is this person?
Byju Raveendran, the founder of the renowned edtech group Byju’s, reassured employees on Saturday that he remains the chief executive of the startup, dispelling rumors of his dismissal as “greatly exaggerated.” This statement followed a shareholder group’s vote to remove him at an emergency general meeting, a decision Raveendran contests, citing violations of essential local rules.
In a detailed 758-word letter reviewed by TechCrunch, Raveendran criticized the shareholder group, which included Prosus Ventures and Peak XV Ventures, for their actions. The group claimed unanimous approval for resolutions addressing governance, compliance issues, financial mismanagement, board reconstitution, and a leadership change to ensure the company is no longer controlled by the founders of T&L.
Once the Most Valuable Edtech Startup in India
The outcome of this dispute holds significant implications for the future of the Bengaluru-headquartered startup, once the country’s most valuable edtech firm. Raveendran argued that the extraordinary general meeting lacked the minimum quorum and failed to secure majority support for proposed resolutions. He noted that only 35 of Byju’s 170 total shareholders attended, representing approximately 45% ownership in the company.
Raveendran emphasized in the letter to employees that the decisions made at the EGM were invalid due to the failure to adhere to established rules and procedures. Despite media scrutiny, he expressed confidence in the truth prevailing.
Current Situation
The cash-strapped startup, seeking new funding for over a year, recently initiated a rights issue to raise about $200 million, resetting its valuation from $22 billion to approximately $25 million.
Raveendran informed employees of the overwhelming response to the rights issue, indicating a strong momentum and inevitable comeback for the company. He denounced the minority shareholders’ dissemination of misinformation through the media, stating that Byju’s would not engage in a media war but remained confident in the company’s position prevailing.
The letter underscores the intense battle for control and the challenges faced by Byju’s amid its search for financial stability and strategic direction. Raveendran’s resolve to maintain his leadership and navigate the company through turbulent times reflects his commitment to Byju’s vision and its employees.
