Byju's crisis deepens: Shareholders group demands EGM, want Byju Raveendran's removal from board

There seems to be no end to Byju’s troubles. After foreign lenders initiate insolvency proceedings against Byju’s, key investors of the edtech firm such as Prosus, Peak XV, Sofina, Lightspeed, and General Atlantic have raised concerns about the company's stability.

A shareholders group has called for an Extraordinary General Meeting (EGM) and plan to vote for the removal of Byju Raveendran and the board. This move comes after the launch of Byju's rights issue.

"We are deeply concerned about the future stability of the Company under its current leadership and with the current constitution of the Board"

However, the Moneycontrol report says that the investors lack the authority to enforce an EGM, citing it as the third such notice. Despite the concerns, six investors affirm their participation in the rights issue.

Early this week, Edtech major BYJU'S was looking to raise USD 200 million through equity rights issue at an enterprise valuation in the range of USD 220-250 million.

As per PTI's report, the company will issue equity at low valuation only for this tranche of issue.

BYJU'S valuation peaked at USD 22 billion when it raised funds in March 2022.

"The board of Think and Learn Private Limited (TLPL) today launched the raising of funds USD 200 million by way of a rights issue to all its equity shareholders to support its ongoing efforts to drive growth and achieve operational sustainability," the company said in a statement.