Online tutoring giant Byju’s, major shareholders, including Prosus NV and Peak XV Partners, voted overwhelmingly on Friday to remove the company’s founder, Byju Raveendran, from his role as chief executive officer.
The move intensifies an already fierce struggle over the future of the once-thriving startup, currently grappling to stay afloat amid financial woes and internal strife.
Byju’s swiftly rebuffed the resolutions, also aimed at ejecting Raveendran from the board of the company he established in 2015, as stated in an official company release on Friday.
The roots of this power struggle can be traced back to the extended conflict between Byju’s and its creditors following a default on a $1.2 billion loan, leading to a unit of the company filing for bankruptcy in the United States.
The online-education pioneer, which once boasted a valuation of $22 billion, is now struggling with the consequences of its rapid expansion during the pandemic, coupled with a decline in demand for online tutoring as schools resumed regular operations.
Byju Raveendran, once hailed for his journey from a tutor to a tech giant, is resorting to desperate measures to salvage the business. In the wake of diminishing revenues, several board members have resigned, and Raveendran has gone to extreme lengths, pledging his and his family’s homes to generate funds for employee salaries. Furthermore, the company is selling new stock at a staggering 90% discount from its previous funding round, all in a bid to secure much-needed capital.
The turning point in this corporate saga came during an hours-long Zoom conference call on Friday, during which Byju’s shareholders descended into a shouting match over the future direction of the company. According to sources, the meeting descended into chaos as unidentified attendees tried to disrupt the proceedings by whistling and making other loud noises.As Byju’s navigates its way through these stormy waters, the departure of the ousted CEO marks a major turning point in the story of the company, raising questions about the company’s future and the strategies needed to restore stability in the highly competitive online education space.