Byju’s founder, ousted by shareholders, insists he’s nonetheless the CEO | TechCrunch

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Byju Raveendran, the founding father of eponymous edtech group Byju’s, informed staff on Saturday that he continues to stay the chief government of the startup and that rumors of his firing have been “tremendously exaggerated,” a day after a shareholder group voted to take away him at an emergency basic assembly.

In a 758-word letter, content material of which was reviewed by TechCrunch, Raveendran claimed that the shareholders violated a number of “important” native guidelines.

The shareholder group, which included Prosus Ventures and Peak XV Ventures, mentioned in an announcement on Friday that the traders “unanimously handed” the resolutions that search to enact, amongst different issues, addressing governance, compliance points, monetary mismanagement, reconstitution of its board and a change in management “in order that it’s not managed by the founders of T&L.”

At stake is the way forward for the Bengaluru-headquartered startup, which was as soon as the nation’s most precious.

Raveendran claimed within the letter that the extraordinary basic assembly lacked the minimal quorum and did not win majority assist for proposed resolutions. Raveendran claimed the EGM was convened with out adhering to the procedures set out by legislation and solely 35 of Byju’s 170 whole shareholders attended, representing round 45% possession within the firm.

“Which means that no matter was determined in that assembly doesn’t depend, as a result of it didn’t keep on with the established guidelines. Whatever the relentless trial by the media, I firmly consider that the reality will inevitably prevail,” he wrote within the letter to staff.

The cash-starved startup, which has been attempting to find new funding for over a yr, late final month launched a rights subject, the place it seeks to lift about $200 million. The rights subject resets the startup’s valuation, as soon as at $22 billion, to about $25 million.

“Our rights subject has seen an amazing response. In reality, such has been the dimensions of its success that even those that had been sitting on the fence at the moment are dashing to get a bit of the motion. This momentum is irreversible, and our comeback is now inevitable,” Raveendran informed staff.

“It needs to be clear from the above and the varied information reviews, which paint a contradictory image of the impact of yesterday’s assembly, that these minority shareholders are intent on spreading misinformation within the media. The Firm won’t stoop to their degree and have interaction in a media battle. We’re assured that their actions will finally fail, and the Firm’s place will prevail.”