Edtech Giant Byju’s Faces Shareholder Revolt: Calls for Management Change and Governance Overhaul
In a dramatic turn of events, major shareholders of Think and Learn Pvt. Ltd., the parent company of edtech behemoth Byju’s, are pushing for a shakeup in the company’s leadership. Prominent investors, including General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg Initiative, have jointly issued a notice calling for an extraordinary general meeting. This meeting aims not only to discuss the removal of co-founder and CEO Byju Raveendran but also proposes a comprehensive reconstitution of the company’s board.
The urgency behind this shareholder revolt became evident as the notice was served after the company allegedly failed to address requisition notices for an extraordinary general meeting sent in both July and December of the previous year. Sources suggest that the discontent is rooted in concerns over governance, financial mismanagement, and compliance issues within the organization.
In a collective statement, the investor consortium emphasized that their actions are motivated by the best interests of the company and its shareholders. The proposed resolutions for the extraordinary general meeting encompass the resolution of lingering governance and financial challenges, a restructuring of the Board of Directors to diminish founder control, and a change in the company’s leadership.
Byju’s, once hailed as India’s most valuable startup with a peak valuation of around $22 billion in late 2021, faced a reversal of fortunes following the pandemic-induced surge in remote learning. The company’s spokesperson remained silent in response to requests for comments on this shareholder revolt, leaving the fate of Byju’s leadership hanging in the balance as stakeholders navigate a critical juncture in the edtech giant’s trajectory.