Byju Raveendra reaches out to shareholders ahead of crucial EGM

The founder said he placed the interests of the company above his personal interest. “As the largest shareholder and provider of capital to the company, it would have been in my best interest to price this rights issue high. But that would not be in the best interest of the company.”

He also committed to restructuring the board and appointing two non-executive directors by the mutual consent of the founder and shareholders. This will be after the 2023 financial year audit, which we expect to close by the end of this quarter. “I believe this will be in the best interest of the company and allow for greater engagement with shareholders,” he said.

To ensure transparency with regard to the usage of funds raised through the rights issue, a third-party agency to monitor the same. This agency will report to all shareholders on a quarterly basis, within 45 days from the end of the quarter, along with commentary from the Board, he mentioned in his letter. 

Byju Raveendran also said a few vested interests are misrepresenting his relationship with the board as adversarial. “Let me be unequivocal in stating that such narratives could not be further from the truth,” he said.  

According to news reports, group of key investors at Byju’s have called for an extraordinary general meeting on Friday to oust its founder CEO Byju Raveendran and his family members over mismanagement and failures. The shareholders EGM, collectively hold more than 30% stake in Byju’s.

Detailing the reasons for seeking the ouster, the notice listed alleged financial mismanagement, erosion of value due to management’s failure to enforce the company’s legal rights and concealment of material information.

Earlier, South Africa’s Prosus, Peak XV Partners, General Atlantic, Sofina, The Chan Zuckerberg Initiative, Owl Ventures, and Sand Capital issued a joint statement seeking change of guard at the company.