BYJU’S alleges certain investors are conspiring, calling for leadership change
This development comes a day after several major investors in BYJU’S issued a notice to its parent Think and Learn Private Limited requesting an extraordinary general meeting to address persistent issues.
BYJU’S management has alleged that certain investors are conspiring and demanding a change in the company’s leadership, according to an internal letter addressed to the edtech firm’s employees.
“...Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of. We are pained to see this action from a few of the investors who should have supported us in our fight at these challenging times, instead of directly speaking to media. The founders are the largest investors and the greatest fighters for BYJU’S,” the letter, seen by YourStory, noted.
This development comes a day after several major investors in BYJU’S issued a notice to Think and Learn Private Limited—the parent company of the edtech firm—requesting an extraordinary general meeting to address persistent issues.
The group of investors are “deeply concerned about the future stability of the company under its current leadership and with the current constitution of the Board," they said in a statement.
The letter from the management team additionally mentioned that BYJU’S has secured commitments exceeding 100% of the intended amount for the $200 million rights issue. The completion of this process is expected to take an additional 25 days, it said.
“The success of the rights issue will ensure that we have sufficient operational capital to fund our short-term needs from March onwards. However, there is a slight delay in salary disbursements this month because of the artificially induced crisis by these select investors,” the letter noted.
The company further stated that the salaries will be disbursed in phases, commencing today, and it is anticipated to conclude by Monday.
Earlier today, it was reported that the edtech firm has yet again failed to pay salaries to its employees for January amid a severe liquidity crunch.
Edited by Kanishk Singh