NEW DELHI: Byju Raveendran, the founder of the troubled edtech giant Byju’s, has reached out to disgruntled investors in a bid to reconcile, announcing a board consideration of an offer on renounced shares. This move aims to address investor concerns over dilution of their stakes following a rights issue that significantly reduced the Indian startup’s valuation by 99%, a Tech Crunch report said.
Faced with capital-raising challenges and governance practice criticisms from investors like Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative, Byju’s initiated a rights issue late January, managing to secure $200 million.This strategy, however, led to a legal battle with certain investors who refrained from participating in the rights issue, prompting them to seek Raveendran’s removal from the company.
Despite the ongoing disputes and legal actions, Raveendran informed shareholders of the board’s intent to extend the share offer to these investors, expressing a desire to move forward collectively despite past animosities.
Furthermore, Byju’s has reportedly secured over half the votes needed to augment its authorized share capital, a crucial step towards realizing the rights issue. However, the estrangement between Byju’s and a segment of its investors, who cumulatively own a significant portion of the company, remains palpable. Their conspicuous absence from a recent extraordinary general meeting, pivotal to the rights issue discourse, underscores the ongoing discord.
However, the rift between Byju’s and its significant investors, who collectively own over 15% of the startup, seems yet unresolved, especially as these investors were absent from a crucial general meeting aimed at addressing the rights issue.
Raveendran remains hopeful, emphasizing his commitment to equality and equity at Byju’s and his dedication to overcoming challenges with all investors on board.
Faced with capital-raising challenges and governance practice criticisms from investors like Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative, Byju’s initiated a rights issue late January, managing to secure $200 million.This strategy, however, led to a legal battle with certain investors who refrained from participating in the rights issue, prompting them to seek Raveendran’s removal from the company.
Despite the ongoing disputes and legal actions, Raveendran informed shareholders of the board’s intent to extend the share offer to these investors, expressing a desire to move forward collectively despite past animosities.
Furthermore, Byju’s has reportedly secured over half the votes needed to augment its authorized share capital, a crucial step towards realizing the rights issue. However, the estrangement between Byju’s and a segment of its investors, who cumulatively own a significant portion of the company, remains palpable. Their conspicuous absence from a recent extraordinary general meeting, pivotal to the rights issue discourse, underscores the ongoing discord.
However, the rift between Byju’s and its significant investors, who collectively own over 15% of the startup, seems yet unresolved, especially as these investors were absent from a crucial general meeting aimed at addressing the rights issue.
Raveendran remains hopeful, emphasizing his commitment to equality and equity at Byju’s and his dedication to overcoming challenges with all investors on board.