While edtech giant BYJU’S is at war across multiple fronts, it seems Byju Raveendran will continue to lead the company as its CEO. Two investors of the company have rejected media reports that shareholders called for the ouster of Raveendran.
“I can confirm that at the EGM, there was no discussion on potential CEO change. This topic never came up and was not on the EGM agenda,” Saurabh Gupta, managing partner at DST Global, told Inc42.
On Tuesday, BYJU’S had called an EGM, and some investors of the startups reportedly sought the ouster of Raveendran to make space for a new interim CEO. However, Ark Impact Asset Management’s MD Alan Kim denied this as well.
“I confirm that potential CEO change was not a topic on the EGM agenda and was not discussed during the EGM on 3rd July 2023,” Kim said.
Further, media reports citing developments at the EGM said investors also sought further information on the ‘end use’ of the $910 Mn (part of the $1.2 Bn Term Loan B) as the status of the funds was not clear in BYJU’s account books.
A source close to BYJU’S CEO had rubbished the report saying that ‘some small shareholders’ were curious about the end use of the TLB funds, adding that some bond-holders also want access to the TLB data.
The concerns were prompted as many investors claimed that they were not receiving their monthly management information system (MIS) reports from the edtech major.
Raveendran was also pulled up by the shareholders over multiple issues plaguing the company. Besides, the company also briefed the shareholders on the recent debt raise of its offline coaching arm, Aakash.
The developments come close on the heels of a slew of issues that have gripped the company in the recent past. Last month, Deloitte Haskins and Sells resigned as the auditor after serving the company for more than six years. The firm cited multiple delays and non-responses from Raveendran on conducting the FY22 audit.
In quick succession, three key board members, including Peak VX Partners’ (formerly Sequoia Capital India) GV Ravishankar, Chan Zuckerberg Initiative’s Vivian Vu, and Prosus’ Russell Dreisenstock, put in their papers.
Curiously, Raveendran, his wife Divya Gokunath and brother Riju Raveendran remain the only serving members on the board now.