Byju’s founder, ousted by means of shareholders, insists he’s nonetheless the CEO | TechCrunch

Symbol Credit: Paul Yeung / Bloomberg / Getty ImagesByju Raveendran, the founding father of eponymous edtech crew Byju’s, instructed workers on Saturday that he continues to stay the manager govt of the startup and that rumors of his firing had been “very much exaggerated,” an afternoon after a shareholder crew voted to take away him at an emergency common assembly.
In a 758-word letter, content material of which was once reviewed by means of TechCrunch, Raveendran claimed that the shareholders violated a number of “crucial” native regulations.
The shareholder crew, which integrated Prosus Ventures and Height XV Ventures, mentioned in a commentary on Friday that the traders “unanimously handed” the resolutions that search to enact, amongst different issues, addressing governance, compliance problems, monetary mismanagement, reconstitution of its board and a transformation in management “in order that it’s not managed by means of the founders of T&L.”
At stake is the way forward for the Bengaluru-headquartered startup, which was once as soon as the rustic’s most useful.
Raveendran claimed within the letter that the unusual common assembly lacked the minimal quorum and didn’t win majority improve for proposed resolutions. Raveendran claimed the EGM was once convened with out adhering to the procedures set out by means of regulation and simplest 35 of Byju’s 170 general shareholders attended, representing round 45% possession within the corporate.
“Which means no matter was once made up our minds in that assembly does now not depend, as it didn’t stick with the established regulations. Without reference to the relentless trial by means of the media, I firmly imagine that the reality will inevitably be triumphant,” he wrote within the letter to workers.
The money-starved startup, which has been looking for new investment for over a 12 months, past due ultimate month introduced a rights factor, the place it seeks to lift about $200 million. The rights factor resets the startup’s valuation, as soon as at $22 billion, to about $25 million.
“Our rights factor has noticed an awesome reaction. In reality, such has been the dimensions of its luck that even those that had been sitting at the fence at the moment are dashing to get a work of the motion. This momentum is irreversible, and our comeback is now inevitable,” Raveendran instructed workers.
“It must be transparent from the above and the quite a lot of information experiences, which paint a contradictory image of the impact of the day prior to this’s assembly, that those minority shareholders are intent on spreading incorrect information within the media. The Corporate won’t hunch to their stage and interact in a media struggle. We’re assured that their movements will in the long run fail, and the Corporate’s place will be triumphant.”

Author: OpenAI