According to three sources familiar with the matter, Byju’s, an Indian education technology firm, is urging three global investors to reconsider their decision to step down from its board. The departures of board members representing Peak XV Partners (previously known as Sequoia Capital India), Prosus, and Chan Zuckerberg Initiative came without explanation, posing a setback for Byju’s, which had a valuation of $22 billion last year.
On June 22, it was revealed that Deloitte was resigning as Byju’s auditor due to the company’s delay in providing financial statements for 2021-22 and failing to furnish requested documents, despite repeated requests from the auditor to the board. In response, Byju’s leadership is engaged in private discussions with the investors in an attempt to persuade them to reverse their decision.
Byju’s and the three investors have not yet responded to requests for comment. Byju’s has dismissed reports of the board members’ departure as “speculation” and stated that it will disclose information as necessary. Byju’s gained significant popularity during the COVID-19 pandemic for its online tutorials on subjects like mathematics, physics, and chemistry for school students.
Two of the sources revealed that the investors collectively decided to resign from the board due to their dissatisfaction with the lack of communication from Byju’s founder and senior management. Additionally, Byju’s and its lenders are currently involved in legal disputes in the United States concerning the restructuring of a $1.2 billion loan.
According to one source, Byju’s investors had expressed concerns to the company’s leadership in recent months regarding audit delays and the handling of issues related to its lenders. As a result of these departures, Byju’s board now consists solely of its founder and CEO, Byju Raveendran, along with his wife, Divya Gokulnath, and his brother, Riju Raveendran.
While talks are ongoing between the investors and Byju’s, it remains uncertain whether their decision to resign will be reversed, according to one of the sources.
