Byju Raveendran, the founder of the edtech giant Byju’s, reassured employees on Saturday that he remains the chief executive of the startup, dispelling rumors of his dismissal following a shareholder group’s vote to remove him at an emergency general meeting.
In a 758-word letter, the contents of which were reviewed by TechCrunch, Raveendran asserted that the shareholders had violated several “essential” local regulations.
The shareholder group, comprising Prosus Ventures and Peak XV Ventures, stated in a Friday statement that the investors had “unanimously passed” resolutions addressing governance, compliance issues, financial mismanagement, board reconstitution, and leadership change “to ensure it is no longer controlled by the founders of T&L.”
The outcome of this dispute holds significant implications for the future of the Bengaluru-based startup, which was once the most valuable in the country.
In the letter, Raveendran asserted that the extraordinary general meeting (EGM) lacked the minimum quorum and did not secure majority support for the proposed resolutions. He claimed that the EGM was convened without adhering to the procedures outlined by law, with only 35 of Byju’s 170 total shareholders in attendance, representing approximately 45% ownership in the company.
“This means that whatever was decided in that meeting does not count because it didn’t adhere to the established rules. Regardless of the relentless scrutiny by the media, I firmly believe that the truth will ultimately prevail,” he wrote in the letter addressed to employees.
The cash-strapped startup, which has been seeking new funding for over a year, recently launched a rights issue aiming to raise about $200 million. The rights issue recalibrates the startup’s valuation, previously at $22 billion, to approximately $25 million.
“Our rights issue has received an overwhelming response. In fact, the scale of its success has been so significant that even those who were previously hesitant are now eager to participate. This momentum is unstoppable, and our resurgence is now assured,” Raveendran assured employees.