The edtech decacorn BYJU’S wades through a rough patch, it seems that the founder and chief executive officer (CEO) Byju Raveendran himself has been caught in the crossfire.
At the extraordinary general meeting (EGM) called on Tuesday (July 4), a section of the startup’s investors reportedly sought the ouster of Raveendran to make space for a new interim CEO.
“The demand was made for him to step away till the time the dust settles down on the court cases and there is clarity on the financials for the last two years (FY22 and FY23). However, since not all investors supported that idea and since the family also holds a significant stake, the decision could not be made,” a source to Media
- Investors grilled the founders and the top management on the ongoing troubles at the startup and sought the disclosure of pro-forma financials of the company
- The EGM was just to update shareholders about the recent changes to the firm’s auditor and a planned restructuring of the businesses, said a person close to BYJU’S CEO
A lot transpired at the EGM as stakeholders grilled the founders and the top management about the ongoing troubles at the startup and sought clarifications about the utilisation of funds and disclosure of pro-forma financials of the company.
People familiar with the development said that the investors sought further information on the ‘end use’ of the $910 Mn (part of the $1.2 Bn Term Loan B) as the status of the funds was not clear in BYJU’s account books. The concerns were prompted as many investors claimed that they were not receiving their monthly management information system (MIS) reports from the edtech major.
“The company did not provide any MIS to its investors. That has also been one of the key contentions,” the source added.
Raveendran was also pulled up by the shareholders over multiple issues plaguing the company. Besides, the company also briefed the shareholders on the recent debt raise of its offline coaching arm, Aakash.