The parent company of edtech giant Byju's, Think & Learn Private Ltd (TLPL), announced on Friday (February 2) that investors had no voting rights on changes to the CEO or management, following a faction of investors' demand for an extraordinary general meeting (EGM) to replace founder and group CEO Byju Raveendran.
"Under these unfortunate circumstances, we would emphasize that the shareholder's agreement does not give them the right to vote on CEO or management change," the Think & Learn Private stated.
TLPL stated that, encouraged by positive feedback from several investors, it is still committed to pursuing its planned $200 million rights offering. The business conveyed appreciation for the broad support it has received from a sizable portion of its shareholders and emphasized the necessity of capital infusion for a successful turnaround.
The vital nature of the rights offer has been communicated to all shareholders, and funding is necessary for a successful turnaround. Unfortunately, the company and our employees are suffering the most from a stalemate that some investors instigated. The statement said, "We will prioritize business continuity in our actions, as it is crucial."
The edtech company claimed in a release that Byju's founder, Byju Raveendran, and his leadership team had guided the business through tough waters, especially after three investors left the board last year, sparking a wider crisis. A working group led by Mohandas Pai and Rajneesh Kumar from the advisory board was established by the firm to positively address investor concerns.
"The company and its leadership have updated the working group on all crucial matters, including ongoing business restructuring, financial position, and audits," TLPL stated in response to the recent events.
TLPL has been reviving the company, bringing the monthly burn down to almost operational breakeven, and soon will be launching an AI-driven technology update. In this environment, some anonymous investors' acts are disruptive during a really difficult moment."
