Prosus NV, an investor in the educational startup Byjus, expressed its concerns about the company’s reporting and governance structure, stating that it did not adapt adequately to the scale of the company. Despite repeated efforts by Prosus’ former director, Byju’s management allegedly disregarded advice and recommendations regarding strategic, operational, legal, and corporate governance matters. As a consequence, the director stepped down from Byju’s board as he was deemed unable to fulfill his fiduciary duty to serve the long-term interests of the company and its stakeholders.
This year, Prosus significantly reduced its valuation of Byju’s from USD 22 billion to USD 5.1 billion. However, the company still holds belief in the potential of Byju’s to revolutionize access to quality education in India and globally, even though they no longer have a representative on the company’s board.
Byju’s spokesperson responded by acknowledging the concerns of their valued investors and assured that they have taken definitive steps to improve corporate governance and financial reporting.
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