Mumbai: Prosus NV and Peak XV Partners, which are major shareholders of Byju’s, on Friday voted to oust the struggling company’s beleagured founder and CEO Byju Raveendran, reported Bloomberg.
With displeasure against the once-celebrated Raveendran growing among stakeholders, the vote is the latest flashpoint as the high-flying online tutoring startup is currently fighting to remain in business.
Raveendran, who boycotted the meeting, was sought to be removed from the board of the company, which he founded in 2015.
The company, however, rejected the resolutions passed by the extraordinary general meeting recently.
“The resolutions passed during the recently concluded extraordinary general meeting, attended by a small cohort of select shareholders, are invalid and ineffective,” Byju’s said in a statement on Friday.
There has been no response from Prosus and Peak yet.
Friday’s decision by shareholders came after a rowdy hours-long Zoom call for investors and management. Several Byju’s employees tried to crash the online meeting, Bloomberg learnt from people who attended.
Unknown participants attempted to disrupt proceedings with whistles and other loud noises a number of times during the meeting.
Byju’s has been involved in a prolonged restructuring conflict with its creditors after the firm missed an interest payment on a $1.2 billion loan. Thereafter, a unit of the company was put into bankruptcy in the US.
Raveendran, whose company was once valued at $22 billion, has been resorting to desperate measures to keep the business afloat. The pioneering online company, which expanded rapidly during the COVID pandemic, suffered once demand for online tutoring dropped remarkably as schools reopened.
Raveendran has pledged his home and those owned by his family members to raise money for employees’ salaries. The company is also selling new stock at a discount of more than 90% from its previous funding round to raise capital.
Also Read: When Byju’s Founder Broke Down In Tears
