Byju’s billionaire founder gets relief from court in fight against shareholders

Byju’s, once valued at more than $20 billion, has seen an estimated 90 percent decline in its valuation.

Mumbai:

Ed-tech firm Byju’s on Wednesday said a court has granted it temporary protection in its fight against a group of shareholders trying to oust the company’s billionaire founder.

Byju’s, which is controlled by CEO Byju Raveendran, was once one of India’s most valuable start-ups as demand for its online learning products surged during the Covid pandemic.

Byju’s, once valued at more than $20 billion, has seen its valuation decline by an estimated 90 percent over the past year.

It lost the support of major investors and faced a series of crises, including the resignation of its auditor Deloitte and a legal battle with US lenders over a $1.2 billion loan.

Earlier this month, a group of shareholders, including tech investor giant Prosus, had requested to hold an extraordinary general meeting (EGM) on February 23 to oust Raveendran and appoint a new board.

But Byju said the Karnataka High Court had ordered that any decision taken by shareholders at the EGM would be “invalid” until the next hearing.

Byju said the reason for the EGM was “a mere sham designed to disrupt the management, control and functioning of the company”.

AFP has reviewed a copy of the interim order.

Investor sources told AFP the court order did not prevent the shareholder meeting from taking place or declare it illegal.

Sources said the EGM will go ahead and investors will still push for Raveendran’s removal as CEO.

Byju has alleged that investors, including US growth equity firm General Atlantic and the Chan Zuckerberg Initiative, a philanthropic venture founded by Facebook boss Mark Zuckerberg and his wife Priscilla Chan, have violated their shareholders’ agreement by calling the EGM.

Representatives from Prosus and the Chan Zuckerberg Initiative had resigned from the Byju’s board last year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)