Byju Raveendran, the CEO of the edtech giant Byju’s, is reportedly seeking an investment of $300 million (approximately Rs 2,500 crore) from existing investors for more control in the company.
Board restructuring demands
According to a Business Standard report, which first reported the development, The shareholders have expressed a desire to revamp Byju’s board, seeking a more significant role in the firm’s operations.
The demand for board restructuring comes at a time when Byju’s is navigating through various legal and governance issues. The shareholders’ request for a change is seen as a strategy to gain more influence over the company’s decision-making processes.
The price of more control
In response to the shareholders’ demands, Raveendran has proposed the $300 million investment as a condition for granting them more control. The proposal is currently under negotiation, and a deal is expected to materialize in the coming months. However, Byju’s has not yet confirmed these developments officially.
A period of turbulence
Byju’s has been facing multiple challenges, including legal battles over loan repayments, a severe funding crunch, mass layoffs, and leadership changes. The edtech giant has also faced scrutiny from the Enforcement Directorate for alleged FEMA violations.
Despite these hurdles, The startup recently held its annual general meeting, where stakeholders approved the financial statements for the fiscal year 2022.
The company, excluding all acquisitions, reported an EBITDA loss of Rs 2,253 crore in FY22, slightly lower than the Rs 2,406 crore loss in FY21. Its total income rose to INR 3,569 crore in FY22, up from Rs 1,552 crore in the previous fiscal year.
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