Byju’s investors called an extraordinary general meeting (EGM) after the startup announced a plan to raise Rs 1662 crore after losing Rs 180806 crore valuation by way of a rights issue to all its equity shareholders.
Byju Raveendran was once the founding CEO of the world's most valuable edtech startup with a peak valuation of Rs 182884 crore. At that time, Byju Raveendran was also the richest teacher in India with a peak net worth of over Rs 28000 crore. However, the edtech startup and its founder are currently going through massive crises as Byju’s investors are reportedly seeking to ‘oust’ Raveendran from leadership roles. As per a report by TechCrunch, a large group of Byju’s investors called an extraordinary general meeting (EGM) after the startup announced a plan to raise Rs 1662 crore after losing Rs 180806 crore valuation by way of a rights issue to all its equity shareholders.
The report by TechCrunch further reveals that Byju’s investors are seeking resolution of the “outstanding governance, financial mismanagement and compliance issues; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the Company.”
Meanwhile, overseas lenders of Byju’s $1.2 billion term loans last week said they have filed a petition before the Bengaluru Bench of the National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution proceedings against Think & Learn Pvt Ltd.
Byju’s had secured $1.2 billion in debt through a term loan facility from a consortium of foreign investors in November 2021. Byju’s had said in a statement that the validity of lenders’ actions, including acceleration of the term loan, “is pending and under challenge in several proceedings, including before the New York Supreme Court”.
According to reports, Byju’s needs at least Rs 500-Rs 600 crore to pay off dues of employees and vendors. Byju’s came under spotlight after is partnered with global football star Messi during the recent FIFA World Cup.
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