Byju Raveendran, founder of the troubled edtech group Byju's, has taken a last ditch effort to appease disgruntled investors. He said the board is considering a proposal for forfeited shares (shares offered to shareholders at a discount so that companies can buy more shares) to prevent dilution of their holdings. be. Indian startups are valued at 99%.
In an email to shareholders Friday morning, a copy of which was seen by TechCrunch, Raveendran said some investors were showing “hostility” and were seeking “uncalled legal action.” Nevertheless, the startup's board said it is considering making an acquisition offer.
Mr. Raveendran also noted that the startup has already received the required 50% or more votes to increase the startup's authorized share capital in order to bring into effect the fully funded $200 million rights issue. This was also communicated to shareholders. Byju's is holding an extraordinary general meeting on Friday to pass a resolution on the rights issue. The rights issue values Byju at less than $250 million, a stunning drop from the $22 billion valuation the company boasted in early 2022.
Prosus Ventures, Peak XV Partners and the Chan Zuckerberg Initiative are among the investors who did not participate in Byju's recent $200 million rights issue. Investors are instead seeking to remove Mr. Raveendran and his family from the startup and void the rights issue.
“I have always founded Byju's with a spirit of equality and fairness, and it was never my intention to leave investors behind, irrespective of their shareholding size,” Raveendran said on Friday. wrote in an email. “From the beginning of this company, my vision has been to take everyone from one milestone to the next. And it has always been my vision that we can overcome challenges together. That was my belief.”
Prosus, Peak Investors resigned from the company's board last year over these concerns, and global auditing giant Deloitte removed Byju's as a client.
“Even my critics know that I have invested everything and more of myself into this company,” Raveendran wrote on Friday. “So we hope he sees the value in continuing Byju's in the same spirit in which he first joined us on our journey.”
