A consortium of four investors, led by Dutch firm Prosus, initiated legal action by filing a petition at the National Company Law Tribunal (NCLT) in Bengaluru against Byju’s. Alleging oppression and mismanagement, the investors, seeking to oust founder Byju Raveendran as CEO, propose a board overhaul. Raveendran’s wife, Divya Gokulnath, and brother Riju Raveendran also sit on the board of Think & Learn, Byju’s parent company. Byju’s spokesperson stated no formal intimation of the NCLT petition has been received.
The investors, in the petition, advocate declaring the current management ‘unfit’ to lead, urging the replacement of the CEO and board. Requests include information disclosure, a forensic audit, and nullifying the rights issue. Simultaneously, an extraordinary general meeting (EGM) convened by Byju’s faced disruptions as startup employees allegedly interfered with the virtual call during its commencement at 9 am.
Despite the ongoing EGM, Raveendran and family members declined attendance, dismissing it as ‘invalid.’ The legal move intensifies challenges for Byju’s, already navigating a tumultuous period. Investors’ discontent with the current management echoes concerns about the company’s strategic direction and financial decisions.
The NCLT petition marks a significant development, shedding light on internal strife within Byju’s leadership. The outcome will influence the edtech giant’s governance structure and leadership composition. Investors’ calls for transparency, a forensic audit, and leadership changes indicate a desire for a thorough examination of Byju’s operations and financial health.
As Byju’s contends with these internal challenges, external scrutiny and market dynamics contribute to a complex narrative. The EGM disruptions underscore the internal tension, raising questions about the company’s ability to address concerns and ensure a stable path forward. The coming weeks will likely witness heightened scrutiny, shaping the trajectory of Byju’s, a key player in the edtech sector.
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