Byju’s in Turmoil: Investors Vote to Oust CEO After Chaotic Meeting
Byju’s, the Indian edtech giant, has been rocked by a series of events that threaten its leadership and future. In a dramatic turn of events, major investors voted to remove founder and CEO Byju Raveendran during a tumultuous virtual meeting marked by disruptions and controversy.
A Tumultuous Meeting: Investors Seek Change
The extraordinary general meeting (EGM) held on February 23rd, 2024, was reportedly marred by technical glitches and disruptions. Some reports even suggest attempts to crash the meeting by unknown participants. Despite the chaos, major investors like Prosus and Peak XV Partners voted to remove Byju Raveendran from his position as CEO and board member.
This move comes amidst growing concerns about Byju’s financial health. The company has been struggling with a heavy debt burden and has faced criticism for its aggressive acquisition strategy. Investors are reportedly seeking a change in leadership to navigate the company through these challenges.
Byju’s Rejects Outcome: Legal Battle Looms
However, the saga doesn’t end there. Byju’s has rejected the outcome of the EGM, calling it “invalid and ineffective.” The company claims that the meeting was not conducted properly and that only a “select group of shareholders” participated. Byju Raveendran has also filed a legal petition challenging the investor decision.
Uncertain Future: Legal Battle and Next Steps
A Karnataka High Court hearing is scheduled for March 13th, 2024, which will determine the validity of the EGM and the removal vote. Until then, Byju Raveendran remains CEO, and the company’s future direction remains uncertain.
The outcome of this legal battle will have significant implications for Byju’s, its investors, and the edtech industry as a whole. Whether Byju Raveendran retains his position or not, the company faces a crucial period of restructuring and navigating its financial challenges.
