Byju’s founder, ousted by shareholders, says rumors of his firing ‘greatly exaggerated’

Byju Raveendran, the founding father of eponymous edtech group Byju’s, advised workers on Saturday that he continues to stay the chief govt of the startup and that rumors of his firing have been “enormously exaggerated,” a day after a shareholder group voted to take away him at an emergency common assembly.

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, mentioned in an announcement 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 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 dear.

Raveendran claimed within the letter that the extraordinary common assembly lacked the minimal quorum and didn’t 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 whole 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 follow 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 trying to find new funding for over a yr, late final month launched a rights situation, the place it seeks to boost about $200 million. The rights situation resets the startup’s valuation, as soon as at $22 billion, to about $25 million.

“Our rights situation has seen an amazing response. In truth, such has been the size of its success that even those that have been sitting on the fence at the moment are dashing to get a chunk of the motion. This momentum is irreversible, and our comeback is now inevitable,” Raveendran advised workers.

“It ought to be clear from the above and the assorted information experiences, 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 interact in a media battle. We’re assured that their actions will finally fail, and the Firm’s place will prevail.”