Turmoil at Byju’s: 3 directors, Deloitte quit

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Edtech company Byju’s has witnessed the resignation of three directors from its board. It is believed that these resignations are due to disagreements with Byju Raveendran, the founder of Byju’s. Additionally, the auditor, Deloitte, has also severed ties with Byju’s.

According to media reports, the officials who have resigned include GV Ravishankar from Sequoia Capital (now Peak XV Partners), Vivian Wu from Chan Zuckerberg Initiative, and Russell Dressenstock from Process. Currently, the only remaining board members are Riju Raveendran (Byju’s brother), Divya Gokulnath (Byju Raveendran’s wife), and Byju Raveendran himself. The company’s auditor, Deloitte, has also resigned, citing a lack of alignment with its policies.

However, the resignations of these three officials have not been officially accepted yet. According to sources, there have been ongoing disagreements between the company’s founders and the board regarding the management practices for the past year. Moreover, there were concerns about transparency, lack of involvement of board members and investors, and a lack of trust in the working methods employed by Byju Raveendran.

Furthermore, the two major investors who have lent funds to Byju’s are already demanding the removal of Byju Raveendran from the company’s board. They have accused Byju’s of hiding approximately $500 million from investors who have provided loans to Byju’s Alpha.

It is worth mentioning that Byju’s is currently facing legal proceedings in the United States regarding the non-payment of installment payments amounting to nearly $1.2 billion, or around ₹9,800 crore. The company has stated that it will not make any payments, including interest, to the lenders until a court decision is reached. Consequently, the risk of default has increased for Byju’s. If the court rules against Byju’s and the company fails to repay the debt even after that, it will result in default.