Prosus, other investors to press for leadership change at India's Byju's (updated)
01/02/2024 11:47
(Adds details on investor statement, background)
NEW DELHI, Feb 1 (Reuters) - A group of Byju's
shareholders including tech investor Prosus said on Thursday it
is seeking a revamp of the embattled Indian education technology
firm's board, including a change in leadership, at an upcoming
extraordinary general meeting.
"We are deeply concerned about the future stability of the
company under its current leadership and with the current
constitution of the Board," the shareholders said in a
statement.
The statement was shared by Prosus, which has a roughly 9%
stake in Byju's, and said it had backing of a "number of major
investors", without naming them. Others supporting the statement
include Sofina and Peak XV, according to a source with
direct knowledge of the matter.
Byju's, controlled by billionaire Byju Raveendran, did not
immediately respond to a request for comment.
The company was one of India's hottest startups, valued at
$22 billion in 2022, but has faced a series of crises including
its auditor Deloitte and board members resigning and a U.S
lawsuit disputing terms and payment of a billion dollar loan.
It is also looking to raise $200 million through a rights
issue of shares to clear immediate liabilities and cover other
operational costs.
(Reporting by Aditya Kalra and Indranil Sarkar; Editing by
Savio D'Souza and Mark Potter)
((Indranil.Sarkar@thomsonreuters.com; Mobile: +91
7022132226;))