Byju's Crisis: 3 board members, auditor resign; cite differences with founder Byju Raveendran | Mint
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Business News/ Companies / News/  Byju's Crisis: 3 board members, auditor resign; cite differences with founder Byju Raveendran
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Byju's Crisis: 3 board members, auditor resign; cite differences with founder Byju Raveendran

As per the report, G V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative, Russell Dreisenstock of Prosus are the ones who have resigned from the board.

Byju’s founder Byju Raveendran. (MINT_PRINT)Premium
Byju’s founder Byju Raveendran. (MINT_PRINT)

Citing differences with founder Byju Raveendran on key operational issues, three board members of Byju's have tendered their resignations, reported CNBC-TV18 on 22 June.

As per the report, G V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative, and Russell Dreisenstock of Prosus are the ones who have resigned from the board.

Apart from this, Deloitte Haskins & Sells resigned as Byju's auditor with immediate effect, the report added. Byju's has now appointed BDO (MSKA & Associates) as statutory auditors. 

As per details, Ravishankar, Wu, Dreisenstock, Riju Ravindran, Byju Raveendran, and Divya Gokulnath sit on the board of directors of Byju's, out of which Ravishankar, Wu, and Dreisenstock are non-executive directors. Their resignations are yet to be accepted, added the report.

ALSO READ: Byju's Layoff: Employee shares ordeal on LinkedIn, says ‘was available 24*7 but...’

Though Byju Raveendran, his brother Riju Raveendran and his wife Divya Gokulnath are the only members who remain on the company's board.

"Since last year, there have been ongoing differences between the founders and the board over the way in which the company was run," MoneyControl quoted sources close to shareholders as saying.

"There was divergence in the way Byju Raveendran approached lender management. The founders did not listen to board members and investors and there was no transparency in the way the company was operated. The trust-building was lacking," the person added.

This is the latest setback for India's most valued startup, which has enrolled Shah Rukh Khan as its brand ambassador. Also, the firm is in a tiff with its lenders in the US and dealing with mounting financial woes in India.

With half of its board resigning, it indicates signs of distress on an operational and financial level at the firm.

Looking at the FY21 (2020-21), Byju's reported a huge jump in losses to more than 4,500 crore. Its revenues for the period dropped marginally.

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ABOUT THE AUTHOR
Saurav Mukherjee
A business media enthusiast...believe to listen more, than just blabbering like others.
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Published: 22 Jun 2023, 06:13 PM IST
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