Byju Raveendran, the founding father of eponymous edtech group Byju’s, advised workers on Saturday that he continues to stay the chief government of the startup and that rumors of his firing have been “vastly exaggerated,” a day after a shareholder group voted to remove him at an emergency general meeting.
In a 758-word letter, content material of which was reviewed by TechCrunch, Raveendran claimed that the shareholders violated a number of “important” native guidelines.
The shareholder group, which included Prosus Ventures and Peak XV Ventures, stated in a press release on Friday that the buyers “unanimously handed” the resolutions that search to enact, amongst different issues, addressing governance, compliance points, monetary mismanagement, reconstitution of its board and a change in management “in order that it’s now not managed by the founders of T&L.”
At stake is the way forward for the Bengaluru-headquartered startup, which was as soon as the nation’s most precious.
Raveendran claimed within the letter that the extraordinary basic assembly lacked the minimal quorum and did not win majority assist for proposed resolutions. Raveendran claimed the EGM was convened with out adhering to the procedures set out by regulation and solely 35 of Byju’s 170 complete shareholders attended, representing round 45% possession within the firm.
“Which means no matter was determined in that assembly doesn’t depend, as a result of it didn’t keep on with the established guidelines. Whatever the relentless trial by the media, I firmly imagine that the reality will inevitably prevail,” he wrote within the letter to workers.
The cash-starved startup, which has been attempting to find new funding for over a 12 months, late final month launched a rights problem, the place it seeks to raise about $200 million. The rights problem resets the startup’s valuation, as soon as at $22 billion, to about $25 million.
“Our rights problem has seen an awesome response. In reality, such has been the dimensions of its success that even those that have been sitting on the fence are actually dashing to get a bit of the motion. This momentum is irreversible, and our comeback is now inevitable,” Raveendran advised workers.
“It needs to be clear from the above and the assorted information reviews, which paint a contradictory image of the impact of yesterday’s assembly, that these minority shareholders are intent on spreading misinformation within the media. The Firm is not going to stoop to their stage and have interaction in a media struggle. We’re assured that their actions will in the end fail, and the Firm’s place will prevail.”
