Get All Access for $5/mo

Byju's Dilemma: Shareholders Vote to Oust Raveendran Meanwhile, Byju contested the decision and said the resolutions taken at the shareholders' meeting were invalid since its founders were absent.

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Byju Raveendran

On Friday, Byju's shareholders, including Prosus NV and Peak XV Partners, voted to oust its founder Byju Raveendran as chief executive officer, and reconstitute its board of directors over "mismanagement". It was reported that shareholders unanimously passed all resolutions at an extraordinary general meeting (EGM). The investors who sought the meeting included General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners, SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina and T. Rowe Price Associates

However, Byju contested the decision of its shareholders , and said the resolutions taken at the shareholders' meeting were "invalid" since its founders were not present. "The resolutions passed during the recently concluded extraordinary general meeting - attended by a small cohort of select shareholders - are invalid and ineffective," company said.

The statement also said, at least one founder-director must attend the meeting to form a valid quorum, but it was not met since neither Byju Raveendran, his wife nor his brother were present. This renders the resolutions taken at the meeting as "null and void".

The downfall of the Ed-tech giant

Byju was launched in 2011 by Byju Raveendran and Divya Gokulnath. During the initial days, the company focused on offering online video-based learning programs for the K-12 segment and for competitive exams. Till 2021, it spent over $2.6 billion on acquisitions.

During the pandemic, the edtech unicorn got a massive boost due to the shutting down of schools and colleges. It took it as an opportunity to strengthen its core and expand to allied services with an array of buyouts. In 2022, the ed-tech firm was valued at $22 billion.

However, post the pandemic, when the educational institutions reopened, things turned topsy turvy, and the company ran into one problem after another.

It was also mired in controversies relating to the search and seizure operations conducted at three premises in Bengaluru by the Enforcement Directorate under Foreign Exchange Management Act (FEMA) with regards to money laundering. The searches reportedly revealed that the edtech startup had received foreign direct investment of around INR 28,000 crore between 2011 and 2023 and remitted INR 9,754 crore to various foreign jurisdictions during the same period.

For the fiscal year ending March 31, 2021, Byju's reported a loss of INR 4,588 crore which was 19 times greater than the previous fiscal. It also saw its valuation tanked. As of January 2024, Byju's was valued at $200 million, a sharp fall from its peak of $22 billion in 2022.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Growing a Business

6 Effective Strategies to Secure Funding

Use these six proven strategies to secure the funding you need.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

In Just 3 Words, Kevin O'Leary Offers a Grim Outlook on Interest Rates and Inflation

The "Shark Tank" star appeared on Fox Business' "Sunday Night in America with Trey Gowdy" and said it is "hard to see" mortgage rates dropping any time soon.

Business News

Toyota Loses Over $15 Billion in Market Value After Investigation

The company was accused of falsifying engine test results that stopped shipment on three vehicle models earlier this year.

News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.