Byju Raveendran stated in an email addressed to shareholders that the board of BYJU is contemplating making the offer in spite of resistance from investors pursuing “uncalled for legal actions.” Raveendran also notified shareholders that the firm has won more than 50% of the required votes to expand its authorized share capital. A resolution to raise the authorized share capital in the wake of its $200 million rights issue has been brought before BYJU’s extraordinary general meeting (EGM) today.
Despite persistent conflicts between BYJU’S and its key investors, creator Byju Raveendran has informed shareholders that the embattled edtech giant’s board is exploring an offer for its dissatisfied investors to join in its rights offering.
Some of the startup’s investors, including Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative, who did not participate in the fundraise, are opposed to the proposal to raise $200 million through a rights issue at a 99% valuation decrease.
Raveendran, in an email to shareholders on Friday (March 29), stated that the board is considering making the offer despite opposition from investors engaged in “uncalled for legal actions”.
Raveendran also informed shareholders that the company has received more than half of the required votes to expand its authorised share capital following the rights issuance.
“I understand that some of our valued current shareholders were unable to participate in the rights issuance earlier. “In good faith, the board is considering making an offer of renounced shares to existing shareholders to ensure that their shareholding is not further diluted,” the CEO stated in an email obtained by Inc42.
“I have always built BYJU’S with a spirit of equality and equity, and I have never intended to leave any investor behind, regardless of shareholding size…”My ambition for this organization has always been to bring everyone along with me as we progress through each milestone. And I have always believed that we will overcome our obstacles together,” Raveendran continued.
Notably, BYJU’S held an extraordinary general meeting (EGM) today in order to approve a resolution raising the authorized share capital for the rights offering. On Thursday, the Bengaluru bench of the National Company Law Tribunal (NCLT) refused to put a stay on the EGM, providing some relief to the embattled edtech behemoth.
Approximately twenty investor representatives and Think & Learn management were present for the EGM, which reportedly began at ten a.m. today. During the EGM, the chairman and company secretary answered questions about the postal ballot, and decisions were announced without opposition. The meeting concluded around 10:30 a.m.
BYJU’S has postponed publishing its financial accounts and has faced criticism on its governance methods from Prosus, Peak XV, and the Chan Zuckerberg Initiative. These investors stepped down from the startup’s board last year.
“Even my critics understand that I have put everything I have into this enterprise, and then some. So, I hope you will see the benefit in continuing with BYJU’S in the same spirit with which you began our journey,” Raveendran wrote in his email.
BYJU’S is at odds with its investors, and both sides are embroiled in numerous legal cases against each other. Last month, several BYJU investors held an EGM and passed a number of resolutions, including one calling for Raveendran and his family members to be removed from the edtech startup’s management team.
The latest step comes a month after BYJU’S completed its $200 million rights offering.
