Investors flag Byju’s failure to recover Rs 1,400 crore from reseller

economictimes.indiatimes.com:

investors have raised red flags over the management's failure to recover about Rs 1,400 crore from a Dubai-based reseller, More Ideas General Trading LLC, while paying out Rs 300 crore in sales commissions at a time when the debt-laden edtech firm is battling a severe fund crunch. Byju’s has, however, disputed the investors’ claim.

In an Extraordinary General Meeting (EGM) notice, a copy of which ET has reviewed, the investors said the company's value has eroded due to the management's neglect in enforcing its legal rights.

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According to the document, More Ideas General Trading, the sole selling agent of Byju’s in GCC countries, owes the edtech firm over Rs 1,400 crore, which the company has been unable to recover despite paying over Rs 300 crore in commissions on sales of Rs 634.18 crores recorded in FY22.

Recently, a group of key Byju's shareholders, collectively holding more than 30% stake, initiated proceedings for the EGM, aimed at removing founder Byju Raveendran and his family members from the board. They have listed out a litany of issues regarding governance, financial mismanagement, breach of its obligation to its shareholders, failure in performance and compliance.

Also read | Investors have no voting rights to remove CEO: Byju’s

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