Amidst the ongoing financial challenges, the shareholders of leading edtech firm Byju’s are gearing up for a crucial vote on Friday to determine the future of key board members, including founder and CEO Byju Raveendran, according to a report by The Times of India.
The special meeting, scheduled for Friday and initiated by a group of investors, will address the potential removal of Raveendran and other existing board members from Think and Learn Pvt Ltd, Byju’s parent company. The fate of Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran—currently the largest shareholders with 26 percent ownership—hangs in the balance, with Raveendran himself voting against the motion.
The investors calling for the extraordinary general meeting (EGM) collectively possess approximately 25 percent of Byju’s shares but will not participate in the vote due to their voluntary forfeiture of voting rights through a signed shareholders’ agreement.
Topics up for discussion at the EGM include resolving governance issues, addressing financial mismanagement concerns, and restructuring the board to diminish founder control, as per the TOI report. Additionally, shareholders retain the right to approach the company law tribunal for alleged mismanagement of funds and minority shareholder oppression.
Previously, talks about ousting Byju Raveendran from the board had surfaced, prompting a company statement asserting that shareholders lacked the authority to make leadership changes.
In a separate development, Think and Learn, operating under the Byju’s brand, has reportedly secured a $300 million commitment from investors for its ongoing rights issue, set to conclude by the end of February. The rights issue, launched in January, aims to raise $200 million through an equity rights offering at an enterprise valuation between $220 million to $250 million—a significant reduction from its peak valuation of $22 billion.
