Edtech major is reportedly engaged in discussions with three board members of the company who stepped down from their positions.
On June 22, media reports noted that key board members—GV Ravishankar, Managing Director at Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus (previously Naspers), and Chan Zuckerberg Initiative’s Vivian Wu—have resigned from the Bengaluru-headquartered company.
According to Reuters, the edtech firm’s leadership is involved in talks to convince the three investors to reconsider their decision. While negotiations between BYJU’S and the investors are ongoing, the outcome regarding their decision to step down remains uncertain, the report added.
YourStory could not independently verify the report.
On Thursday, BYJU’S denied reports of the three board members resigning, adding that “any significant developments or changes within our organisation are shared through official channels and announcements…”
Meanwhile, Reuters reported that the collective decision by the investors to resign stemmed from a lack of communication from BYJU’S founder and senior management.
Over the past few months, BYJU’S investors have expressed concerns to the company’s leadership, particularly regarding audit delays and the handling of issues concerning lenders, the report added.
The edtech unicorn is already grappling with the aftermath of its auditor’s resignation and ongoing legal challenges related to a $1.2 billion term loan B (TLB).
On June 22, auditing firm Deloitte Haskins & Sells resigned as BYJU’S and Aakash’s statutory auditor. Deloitte attributed its resignation to the delay in the company filing its FY22 financial statements.
Now, BYJU’S has appointed BDO (MSKA & Associates) as its statutory auditor for the year commencing from FY22 for the next five years.
Earlier today, CNBC-TV18 reported that the Ministry of Corporate Affairs ordered an inspection against BYJU’S last week, adding that the ministry has taken cognizance of various corporate governance lapses at the company.
However, BYJU’S denied the media reports, saying “We have not received any such correspondence from MCA regarding this, and are not aware of any such inspection.”
The edtech unicorn has been plagued with mounting losses, layoffs, and pending loans after the end of the pandemic-led edtech boom. Earlier this week, it initiated another round of job cuts that will impact more than 1,000 people.
