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Byju founder makes stock offer to settle with alienated investors

Byju Raveendran, founder of edtech group Byju’s, has made a last-ditch attempt to appease the Indian startup’s disgruntled investors by informing them that the board is considering a proposal to give up shares to prevent their holdings from being diluted.

Raveendran said in an email to shareholders on Friday morning, a copy of which was reviewed by TechCrunch, that despite the “hostility” displayed by some investors who were seeking “unnecessary legal action,” the startup The company’s board of directors is considering making the offer.

Raveendran also informed shareholders that the startup has secured more than 50% of the votes required to increase the startup’s authorized share capital to give effect to the $200 million raised recently through a rights issue. Byju’s will hold an extraordinary general meeting of shareholders on Friday to try to pass a resolution on the rights issue.

Investors including Prosus Ventures, Peak XV Partners and the Chan Zuckerberg Initiative did not participate in Byju’s recent $200 million placement. Instead, investors sought legal action to remove Raveendran and his family from the startup and to invalidate the rights issue.

“I have always built Byju’s in the spirit of equality and fairness, and it was never my intention to leave any investor behind, regardless of the size of their holdings,” Raveendran wrote in an email on Friday. “From the company’s inception, My vision is to take everyone from one milestone to another. I always believe that together we will overcome challenges.”

This is a development story. Stay tuned for more content.

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