Byju's investors forge ahead with CEO ouster plan amid legal hurdles and financial turmoil

An extraordinary general meeting (EGM) to decide the fate of Byju Raveendran, the CEO and founder of Byju's, India's leading ed-tech giant, will convene today.

The meeting, organised by a consortium of shareholders including global tech investor Prosus, is poised to deliberate on Raveendran's removal amid a backdrop of profound financial distress and legal entanglements that have engulfed the company over the past year.

Byju's, once lauded as a beacon of success in India's startup landscape with a valuation soaring over $20 billion, has witnessed a catastrophic downfall, experiencing a staggering 90 per cent decline in its value within the last year.

The ed-tech firm, which initially flourished amid the surge in demand for online learning during the Covid-19 pandemic, now finds itself grappling with a myriad of crises, including investor pullouts, the resignation of Deloitte as its auditor, and a contentious legal battle with US lenders over a hefty $1.2 billion loan.

Despite Byju's assertion of a Karnataka High Court ruling that deems any decisions made at the meeting as "invalid" until the next hearing, the consortium of investors remainresolute in its pursuit of Raveendran's ousting.

Byju's contends that prominent investors such as General Atlantic and the Chan Zuckerberg Initiative, along with others, have breached shareholder agreements by instigating the meeting.

In tandem with the mounting pressure from investors, Raveendran faces intensified scrutiny from regulatory authorities.

The Enforcement Directorate (ED) has escalated its investigation into alleged Foreign Exchange Management Act (FEMA) violations involving Byju's and its founder.

The agency's decision to fortify the Look Out Circular (LOC) against Raveendran highlights the gravity of the probe, with the Indian Bureau of Immigration directed to ensure his presence within the country's borders.