raveendran

Startups

“Byju’s Founder Proposes Share Offering in Effort to Reconcile with Disaffected Investors”

Byju’s is holding an extraordinary general meeting Friday, where it will attempt to pass the resolution over the rights issue. The rights issue values Byju’s under $250 million, a stunning drop from the $22 billion valuation it carried in early 2022. Prosus Ventures, Peak XV Partners and Chan Zuckerberg Initiative are among the investors who didn’t participate in Byju’s recent $200 million rights issue. The investors have instead sought, using legal means, to remove Raveendran and his family from the startup and to invalidate the rights issue. The investors quit the startup’s board whereas the global auditing giant Deloitte dropped the account of Byju’s over these concerns last year.

Kira Kim
March 29, 2024

Startups

Byju’s Unit Declared Beneficial Owner of $533 Million Funds by Camshaft

Camshaft disclosed in court filings this week that some $533 million it managed for Byju’s Alpha, a U.S. unit of Indian edtech group Byju’s, was transferred to another 100% and U.S.-based subsidiary of Byju’s, thereby refuting allegations that the Indian firm used the wealth manager’s services to misappropriate money. In the court filings, Camshaft said the capital was transferred to Inspilearn LLC, a Delaware-based subsidiary of Byju’s. Camshaft also clarified that Byju’s or any of its entities are not limited partners in the hedge fund. Camshaft Capital attracted media attention last year after lenders of Byju’s questioned the legitimacy of the wealth advisor as they claimed the $533 million was a collateral for a $1.2 billion they had lent to the Indian startup. A select few estranged investors in Byju’s later used the allegation to discredit Byju’s founder Byju Raveendran’s credibility.

Media & Entertainment, Startups

“Firing Fears Dispelled: Byju’s Founder Denies Ouster Claimed by Shareholders”

In a 758-word letter, content of which was reviewed by TechCrunch, Raveendran claimed that the shareholders violated several “essential” local rules. Raveendran claimed in the letter that the extraordinary general meeting lacked the minimum quorum and failed to win majority support for proposed resolutions. Raveendran claimed the EGM was convened without adhering to the procedures set out by law and only 35 of Byju’s 170 total shareholders attended, representing around 45% ownership in the company. The rights issue resets the startup’s valuation, once at $22 billion, to about $25 million. “Our rights issue has seen an overwhelming response.

Dylan Williams
February 24, 2024

Startups

Byju’s Subscription for $200M Rights Issue, Slashing Valuation by 99%, Reaches Full Capacity

Byju’s cut the pre-money valuation ask in the rights issue to about $20 million to $25 million, TechCrunch earlier reported. If they don’t participate in the rights issue, they risk losing nearly all their stake in Byju’s. “Our rights issue is fully subscribed and my gratitude to my shareholders remains strong,” founder and chief executive Byju Raveendran wrote in a letter to shareholders Tuesday. “But my benchmark of success is the participation of all shareholders in the rights issue. “I understand that participating in this rights issue may seem like a Hobson’s choice.