Byju's shareholders vote to remove founder Raveendran as CEO

Major shareholders of Byju's, including Prosus NV and Peak XV Partners, have voted to remove the company's founder, Byju Raveendran, from his position as chief executive officer, according to a Bloomberg report. 

According to the report, the decision, made during a general meeting on Friday, marks a significant escalation in the ongoing battle for control of the once-prominent online tutoring startup.

In response to the resolutions passed by shareholders seeking Raveendran's removal from both the CEO position and the company's board, Byju's issued a statement rejecting the validity of the decisions. The company asserted that the resolutions were passed during a meeting attended by only a select group of shareholders, deeming them "invalid and ineffective."

The move reflects growing discontent among investors towards Raveendran, who chose to boycott the meeting. The discord underscores the relationship between the entrepreneur and the investors who previously supported Byju's meteoric rise in India's startup ecosystem.

The decision to oust Raveendran follows a turbulent virtual meeting between investors and management, during which attempts were made by unidentified participants to disrupt proceedings with loud noises.

Raveendran, once hailed as a visionary entrepreneur, now finds himself grappling with the consequences of rapid expansion during the pandemic-induced surge in demand for online education. In a bid to stabilise the company's finances, Raveendran has resorted to desperate measures, including offering personal assets as collateral and selling new stock at steep discounts.