Byju’s Faces Critical EGM as Consortium Seeks Leadership Change

Byju's Faces Critical EGM as Consortium Seeks Leadership Change

VoM News Desk | February 23, 2024 | 10:28 AM IST | India | Follow on Google News

Byju’s Faces Critical EGM as Consortium Seeks Leadership Change

Byju’s Faces Critical EGM as Consortium Seeks Leadership Change

Amidst financial struggles, ed-tech giant Byju’s faces an extraordinary general meeting (EGM) as a consortium, including investors like Prosus, aims to replace founder and CEO Byju Raveendran. The once highly valued startup has seen a significant decline, grappling with investor withdrawals, Deloitte’s resignation as auditor, and legal disputes. Byju’s claims the Karnataka High Court deems the meeting’s decisions “invalid” until the next hearing. However, the meeting will proceed as investors push for Raveendran’s removal.

Enforcement Directorate Upgrades Notice Against Byju’s CEO

Byju Raveendran faces intensified legal challenges as the Enforcement Directorate (ED) upgrades its Look Out Circular (LC) over a FEMA probe. The circular seeks to prevent Raveendran from leaving the country. The ED’s actions follow a substantial foreign exchange violation notice exceeding Rs 9,300 crore against Byju’s and Raveendran. The charges include alleged failures to submit import documents and delays in filing documents related to exports.

Byju’s Downfall: From Unicorn to Financial Struggles

Byju’s, founded in 2006, transformed from offering MBA exam classes to becoming India’s first ed-tech unicorn in 2019. The COVID-19 pandemic propelled its success, but controversies emerged, leading to a 75% valuation cut by Prosus. The EGM represents a critical juncture for Byju’s future as leadership changes and legal issues unfold, marking a stark contrast to its previous success.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.