Prosus, other investors to press for leadership change at BYJU's

The edtech company was one of India's hottest startups, valued at $22 billion in 2022, but has faced a series of crises including its auditor Deloitte and board members resigning and a US lawsuit disputing terms and payment of a billion-dollar loan.

Around six investors in Think and Learn Private Limited, which operates under BYJU's brand, have called for an extraordinary general meeting to address issues at the edtech major and oust founders from having control over the firm, sources aware of the development said.

The investors led by Dutch investment firm Prosus in the EGM notice have requested the resolution of the outstanding governance, financial mismanagement and compliance issues and the reconstitution of the Board of Directors.

"The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement and compliance issues, the reconstitution of the Board of Directors so that it is no longer controlled by the founders of T&L and a change in leadership of the Company," the notice sent to shareholders by the group of investors said.

According to a source, who did not wish to be identified, the notice has been backed by General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, who jointly account for around 30 per cent stake in BYJU's.

As per the notice, a consortium of BYJU's shareholders had in July and December also requested the board of directors for the meeting but the same was disregarded.

BYJU's did not immediately respond to the query in this regard.