Byju's Three Directors Confirm Resignations In Another Setback
The beleaguered edtech giant says it's in talks with investors over board reconstitution and induction of independent directors.
Byju's three directors representing key investors confirmed their resignations despite a denial by the beleaguered edtech giant facing lender and regulatory scrutiny.
Peak XV Partners' GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have stepped down from the board of Byju's parent Think & Learn Pvt., according to their spokespersons.
"We are committed to supporting the company in bringing on board an independent director in order to strengthen business processes and internal control mechanisms," a Peak XV Partners spokesperson said.
The statement from Peak XV (formerly Sequoia Capital India and Southeast Asia) and others comes a day after the edtech giant denied all claims of three board members resigning.
Byju's had called media reports about the resignations of the non-executive directors "entirely speculative". But on Friday, it admitted to being in talks with investors "on the reconstitution of the board, including the induction of independent directors".
"The need for reconstitution arose as few investors had to vacate the board seat due to their shareholding falling below a minimum required threshold as per our shareholding agreement," a Byju's spokesperson said. "We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale."
Byju's troubles have multiplied over the past year with searches by the Enforcement Directorate, valuation cuts by prominent investors, a legal battle with lenders over repayment terms, layoffs, and delayed financial results and funding. Its auditor Deloitte Haskins & Sells also resigned citing "long delayed" financial statements.
