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Tag: Byju Raveendran

  • Byju’s investors call for EGM to remove founder following rights issue | TechCrunch

    Byju’s investors call for EGM to remove founder following rights issue | TechCrunch


    A group of large investors in Byju’s has called for an extraordinary general meeting seeking to change the leadership at Byju’s days after the edtech group launched a rights issue at $25 million pre-money valuation.

    The consortium of investors said it has called for the EGM following many months of continued efforts to address the persistent issues at Byju’s, which at the time of its last fundraise in 2022 was the most valuable edtech globally.

    “The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement and compliance issues; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the Company,” a consortium of the investors said in a statement Thursday.

    “The issuance of this EGM notice follows many months of continued efforts by shareholders to engage with the Company to address persistent issues relating to corporate governance, mismanagement and compliance. These efforts have been ongoing following the resignationfrom the Board in June 2023 of directors nominated by Prosus and other shareholders.”

    Prosus, General Atlantic, Peak XV, Chan Zuckerberg Initiative, Owl and Sofina are among those requesting the EGM, a source directly familiar with the situation told TechCrunch.

    Full statement:

    As investors with a track-record in supporting the Indian start-up sector over many years, we are strongly committed to serving the long-term interests of the companies in which we invest and their stakeholders.

    With this in mind, pursuant to the rights granted to shareholders under the Companies Act, 2013, a notice has [today] been issued to Think & Learn Private Limited (T&L) shareholders requesting an extraordinary general meeting (EGM) to address persistent issues. The request for an EGM is supported by a consortium of T&L shareholders and follows earlier notices of requisition sent to the T&L Board of Directors in July and December 2023, which were disregarded.

    The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement and compliance issues; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the Company.

    The issuance of this EGM notice follows many months of continued efforts by shareholders to engage with the Company to address persistent issues relating to corporate governance, mismanagement and compliance. These efforts have been ongoing following the resignationfrom the Board in June 2023 of directors nominated by Prosus and other shareholders.

    While we are grateful for the efforts of the independent advisory council in addressing some of the looming challenges facing T&L, we are deeply concerned about the future stability of the Company under its current leadership and with the current constitution of the Board.

    We believe wholeheartedly in India and in the transformative role that education technology can play in improving teaching and learning. We also continue to believe in the role and contribution of BYJU’s. As shareholders, we will continue to assert our rights, in collaboration with other shareholders and government authorities to safeguard the long-term interests of the Company and its stakeholders.

    More to follow.



    Manish Singh

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  • Byju’s cuts valuation ask by 99% in rights issue amid cash crunch | TechCrunch

    Byju’s cuts valuation ask by 99% in rights issue amid cash crunch | TechCrunch


    Byju’s, the world’s most valuable edtech startup, has cut its valuation ask by 99% in a rights issue it launched Monday as the Indian firm works to address its working capital needs. The startup is looking to raise $200 million in the rights issue, a capital it said is “essential to prevent any further value impairment.”

    The startup, once India’s most valuable, is resetting its valuation to “next to nothing” in the rights issue, where all existing investors have an opportunity to participate, according to a source familiar with the matter. If Byju’s succeeds in raising $200 million, the post-money valuation of the startup will be in the range of $220 million to $250 million, a 99% drop from the $22 billion value that the startup had attained in 2022, according to the source, who requested anonymity sharing nonpublic information.

    Byju’s founder Byju Raveendran told shareholders in a letter Monday that he and other founders of the edtech group have invested $1.1 billion into the Bengaluru-headquartered startup in the last 18 months and seek continued support from the investors to keep the business afloat. “We have made immense personal sacrifices for the sake of the company. We have spent our lives building this company and are fervent believers in its mission,” Raveendran wrote in the letter, seen by TechCrunch.

    The rights issue comes as Byju’s looks to secure capital amid a severe funding crunch. The startup, which spent $2.5 billion acquiring more than a dozen firm in 2021 and 2022, has raised more than $5 billion in equity and debt from backers including Peak XV, Lightspeed, Chan Zuckerberg Initiative, BlackRock, UBS, Prosus Ventures and B Capital. Byju’s said in a statement that it expects the rights issue to close in 30 days.

    “It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organization, razor-focused on execution. The board believes it is imperative that the company raises capital in order to create a glidepath to deliver strong shareholder value,” Raveendran wrote in the letter.

    Byju’s is not the only high-profile Indian startup that has struggled to raise capital in recent years. Online pharmacy startup PharmEasy cut its valuation by over 90% to below $600 million in a rights issue last year. The startup had raised over $1.5 billion in equity and debt prior to the rights issue.

    Byju’s has been chasing for new funding for nearly a year. The startup was in final stages to raise about $1 billion last year, but the talks derailed after the auditor Deloitte and three key board members quit the startup. Instead, Byju’s ended up raising less than $150 million in that round from Davidson Kempner and had to repay the investor the full committed amount after making a technical default in a separate $1.2 billion term loan B.

    Byju’s was preparing to go public in early 2022 through a SPAC deal that would have valued the company at up to $40 billion. However, Russia’s invasion of Ukraine in February sent markets downward, forcing Byju’s to put its IPO plans on hold, according to a source familiar with the matter. As market conditions worsened, so too did the business outlook for Byju’s.



    Manish Singh

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