Gloves on: Not taking allegations lying down, remain CEO, says Byju Raveendran

livemint.com:

BENGALURU : Byju Raveendran, chief executive officer of India’s once-most valued startup, Byju’s, assured employees that he retains control of the company he founded and that he plans to challenge shareholders who have voted to oust him. “Contrary to what you may have read in the media, I continue to remain CEO, the management remains unchanged, and the board remains the same," Raveendran said in a letter to employees on Saturday.

“I am not taking any of these allegations lying down and will challenge these illegal and prejudicial actions." Byju’s has deemed invalid the extraordinary emergency meeting held on Friday, where shareholders also voted for the company’s board to be reconstituted. The meeting was attended by at least two dozen investors, including Prosus Ventures, General Atlantic, Chan Zuckerberg Initiative, and Peak XV Partners.

These developments further underline the turbulent relationship between Byju’s and its investors after the troubled edtech company announced a $200-million rights issue that stands to dilute the shareholding of non-participating investors by 99%. On Thursday, these investors, with support from Tiger Global and Owl Ventures, filed a petition before the National Company Law Tribunal against Byju’s $200-million rights issue, alleged suppression of investor rights, outstanding governance, financial mismanagement and other compliance issues at Byju’s.

They also called for a reconstitution of the board of directors so that it is no longer controlled by the founders of (Byju’s parent company Think and Learn Pvt. Ltd), and a change in leadership of the company.