As Byju’s problem continue to mount, the company called for a shareholders meeting on Saturday, June 24th, to clear all doubts.
While updating close to 75 shareholders, Raveendran updated that Byju’s has his personal investments, and the company’s valuation was intact at $22 billion. He also acknowledged his past mistakes and assured shareholders that his learnings far outweigh any missteps.
According to sources aware of the shareholder meeting, he highlighted his personal investments in the company, including $400 million in the parent company, $250 million for the Aakash acquisition, and an additional $250 million through pledged secondary shares for the last funding round. “He also mentioned that all the secondaries done have been invested back in the company at a $22 billion valuation,” said the source.
The crisis at Byju’s reached a new high as its statutory auditor, Deloitte Haskins & Sell, resigned due to delays in financial statements. This was followed by the resignation of three board members from Prosus, Peak XV Partners and Chang Zuckerberg Initiative.
The board members, who have resigned, were also present for the meeting, and all three shared their reason and confirmed their resignations. Raveendran also briefed the shareholders that the company has yet to accept the resignations.
The three board members assured shareholders that they would work with the company in the transition and added that the auditor had been causing delays and complications in the results.
Raveendran also mentioned to the shareholders that discussions had been ongoing for several weeks regarding the reconstitution of the board to strengthen processes and align with the company’s ambitions.
Meanwhile, Ajay Goel, group CFO, shared the timeline for the financial results. According to sources, Goel committed to closing the audit for FY22 by the end of September and the FY23 audit by the end of December.
“He updated the shareholders that the audit for most subsidiaries for FY22 has been completed,” added the source.
Roshan Thomas, group General Counsel, also at the meeting, assured the shareholders that on Term Loan B, constructive negotiations are ongoing, and the company is hopeful for a quick resolution.