Byju’s Investors Unanimously Vote For Removal Of CEO Byju Raveendran

Major shareholders of Byju’s, including Prosus NV and Peak XV Partners, voted on Friday to remove founder and CEO Byju Raveendran. This vote escalates the ongoing battle for the future of the once-celebrated online tutoring startup, currently grappling with financial difficulties.

Byju’s swiftly rejected these resolutions, deeming them invalid due to a small turnout of select shareholders at the extraordinary general meeting.

This move underscores growing dissatisfaction with Raveendran, who notably boycotted the meeting. The discord arises amidst Byju’s struggles to sustain its once-thriving business, particularly after missing a significant loan interest payment, leading to a bankruptcy filing for one of its units in the US.

The recent Zoom call between investors and management witnessed disruptions from unidentified participants, reflecting the heightened tensions within the company. Byju’s expansion during the pandemic, coupled with a subsequent decline in demand for online tutoring, has left the company in a precarious financial situation.

Raveendran’s efforts to salvage the business include personal sacrifices, such as pledging his and his family’s homes to secure funds for employee salaries. Additionally, Byju’s is resorting to drastic measures like selling new stock at a substantial discount to raise capital.

This development aligns with broader challenges faced by India’s tech startups, with Paytm also encountering difficulties following the suspension of a key division by the central bank.

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