Mumbai: Even as key investors are demanding removal of Byju’s founder and group CEO Byju Raveendran From the leadership position and the restructuring of the board of the company – which has remained largely a family-run entity – Ravindran Has clearly indicated that he is not going to step down from the top post. On the contrary, the company termed this action of the investors as a conspiracy.
“We would emphasize that the shareholders’ agreement does not give them the right to vote on CEO or management changes,” Byju’s said in a statement on Friday. In a separate email to employees, the company’s management said the founder He is the ‘biggest investor’ and the greatest fighter of Byju. “When investors were hesitant to step forward Harsh Amidst macroeconomic conditions, the founders personally invested over $1 billion of capital to keep our dream alive… Some investors, seeing the crisis we faced, called it a conspiracy and Byju’s Group CEO We saw this as an opportunity to demand the removal of our founder,” he said in the mail reviewed by TOI.
The cash-strapped startup, which failed to pay salaries to employees for the month of January on time, blamed the situation on an “artificially induced crisis” by select investors. The management claimed that the salary disbursement would be paid in a phased manner and would be completed by Monday, adding that Raveendran had mortgaged his only house to ensure salary payment to the employees in the last several months.
Byju’s said that since the launch of the $200 million rights issue on January 29, the firm has received commitments for more than 100% of the offered amount. “This will ensure that we have adequate growth capital and can also meet all operational liabilities. This will mark the beginning of the final phase of our recovery,” management told employees.
“We would emphasize that the shareholders’ agreement does not give them the right to vote on CEO or management changes,” Byju’s said in a statement on Friday. In a separate email to employees, the company’s management said the founder He is the ‘biggest investor’ and the greatest fighter of Byju. “When investors were hesitant to step forward Harsh Amidst macroeconomic conditions, the founders personally invested over $1 billion of capital to keep our dream alive… Some investors, seeing the crisis we faced, called it a conspiracy and Byju’s Group CEO We saw this as an opportunity to demand the removal of our founder,” he said in the mail reviewed by TOI.
The cash-strapped startup, which failed to pay salaries to employees for the month of January on time, blamed the situation on an “artificially induced crisis” by select investors. The management claimed that the salary disbursement would be paid in a phased manner and would be completed by Monday, adding that Raveendran had mortgaged his only house to ensure salary payment to the employees in the last several months.
Byju’s said that since the launch of the $200 million rights issue on January 29, the firm has received commitments for more than 100% of the offered amount. “This will ensure that we have adequate growth capital and can also meet all operational liabilities. This will mark the beginning of the final phase of our recovery,” management told employees.
