Byju’s, the once high-flying Indian startup, has experienced significant changes in its board composition as all three global investors confirmed the resignations of their representatives on Friday, Reuters news report said.
GV Ravishankar of Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus, and Vivian Wu from the Chan Zuckerberg Initiative have stepped down from Byju’s board. As a result, the board now solely consists of members from the founder’s family.
Byju’s valuation has faced a sharp decline recently, leading investors to revise their estimates. The education tech company, which was valued at $22 billion in 2022, has been grappling with legal challenges, auditing problems, and workforce reductions. According to disclosures, Blackrock, one of the investors, has reduced its internal valuation of the company by over 60 percent to $8.2 billion.
In response to these developments, Byju’s issued a statement to Reuters on Friday, stating that it is engaged in discussions with investors to restructure the board, including the addition of independent directors.
The online education company clarified that a few investors had to relinquish their board seats due to their shareholding falling below the required minimum threshold, necessitating a board reshuffle. Byju’s assured stakeholders that the company is actively working towards forming a diverse board that aligns with its size and scale.
The confirmation of the resignations follows reports from Reuters and other media outlets on Thursday that three Byju’s board members had recently stepped down. Subsequently, Deloitte, the company’s auditor, revealed its decision to resign as Byju’s had postponed the submission of financial statements for 2021-22 and had not provided the requested documents, despite multiple letters from Deloitte to the board.
Byju’s is urging its three global investors to reconsider their decision to leave the board. Peak XV Partners issued a statement to Reuters, expressing their commitment to support the company in appointing an independent director to enhance business processes and internal control mechanisms.
