Byju Raveendran, the founder of eponymous edtech group Byju’s, reassured his employees on Saturday that he remains the chief executive of the startup, despite rumors of his firing circulating. This comes after a shareholder group held an emergency general meeting in an attempt to remove Raveendran from his position.
In a 758-word letter, which has been reviewed by TechCrunch, Raveendran stated that certain shareholders had violated essential local rules.
The shareholder group, which included Prosus Ventures and Peak XV Ventures, issued a statement on Friday claiming that their proposed resolutions had been unanimously passed at the meeting. These resolutions aimed to address governance and compliance issues, as well as financial mismanagement, and called for a change in leadership to ensure that the company was no longer controlled by the founders of T&L.
The future of the Bengaluru-headquartered startup, which was once the most valuable in the country, now hangs in the balance.
Raveendran stated in his letter that the extraordinary general meeting had failed to meet the minimum quorum and had not garnered majority support for the proposed resolutions. He also noted that the meeting had been called without adhering to the proper legal procedures and that only 35 of the total 170 shareholders had attended, representing about 45% of the company’s ownership.
“This means that whatever was decided at the meeting holds no weight, as it did not follow the established rules. Despite the media’s unrelenting efforts, I have full faith that the truth will ultimately triumph,” Raveendran reassured his employees.
The cash-starved startup, which has been seeking new funding for over a year, recently launched a rights issue in an attempt to raise $200 million. This move has caused the company’s valuation to drop from $22 billion to $25 million.
“The response to our rights issue has been overwhelming. In fact, even those who were previously unsure have now rushed to get a piece of the action. This momentum is unstoppable and our comeback is inevitable,” Raveendran told his employees confidently.
“As you can see from various news reports, which provide conflicting information about the outcome of the meeting, these minority shareholders are bent on spreading false information in the media. However, we will not stoop to their level and engage in a media battle. We have full confidence that their actions will ultimately fail, and the company’s stance will prevail,” Raveendran concluded.
