Exited Byju’s board, say Peak XV, Prosus, CZI
- Three external board members of Think & Learn had stepped down from the board over differences with the founder over the delayed filing of FY22 financial statements as well as its approach to its lenders
Venture capital firms Peak XV Partners and Prosus Ventures, and Chan Zuckerberg Initiative (CZI) have confirmed the resignations of their representatives from the board of Think and Learn Pvt. Ltd, the parent of India’s largest edtech company Byju’s.
“We confirm that G.V. Ravishankar, managing director, Peak XV Partners, has resigned from the board of Think & Learn Pvt. Ltd. We are committed to supporting the company in bringing on board an independent director in order to strengthen business processes and internal control mechanisms,” a spokesperson for Peak XV Partners, formerly Sequoia Capital India, said in a statement.
A Prosus Ventures spokesperson also said Russell Dreisenstock, the representing director from MIH Edtech Investments BV (a Prosus entity) on the board of Think & Learn, has also resigned from his position. “The company is required to file the resignation letter with the ministry of corporate affairs in India within the required time period,” the spokesperson added. They did not give any specific reasons for the resignations.
A CZI spokesperson said: "We confirm that Vivian Wu of the Chan Zuckerberg Initiative has resigned from the board of Think & Learn Pvt. Ltd.”
On 22 June, Mint reported, citing people with knowledge of the development, that all three external board members of Think & Learn had stepped down from the board over differences with the founder over the delayed filing of FY22 financial statements as well as its approach to its lenders.
On Thursday, Byju’s auditor Deloitte Haskins & Sells, which audited the books of Byju’s for six years, also said it was resigning with immediate effect, citing long-delayed financial statements for the year ended 31 March 2022.
Byju’s then termed the news of its directors resigning as “speculation” and “firmly denied” the reports.
On the same day, Byju’s named BDO (MSKA & Associates) as its new auditor.
Peak XV owns around 6% of Think & Learn, while CZI owns 2.5-3%, and Prosus 9%. But the edtech company has over 70 investors on its captable.
Byju’s has separately been in a legal tussle with the lenders of the $1.2 billion term loan B it raised in November 2021. It also declined to make an interest payment earlier in June, citing predatory tactics by lenders and pending lawsuits.
“The management has been engaging with investors in constructive discussions on the reconstitution of the board at BYJU'S, including the induction of independent directors. The need for reconstitution arose as few investors had to vacate the board seat due to their shareholding falling below a minimum required threshold as per our SHA,” a spokesperson for Byju's said.
“We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale,” the spokesperson added.
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First Published:23 Jun 2023, 11:15 PM IST
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