Two prominent investors in Byju’s, the Indian edtech startup, have confirmed that their representatives have resigned from the company’s board. GV Ravishankar of Peak XV Partners and Russell Dreisenstock of Prosus have stepped down, which could compound the challenges faced by Byju’s, whose valuation dropped steeply recently. The company was valued at $22 billion in 2020. “We are committed to supporting the company for bringing on board an independent director in order to strengthen business processes and internal control mechanisms,” said Peak XV Partners in a statement to Reuters.
Byju’s Faces Multiple Challenges
Byju’s has been facing pressure from lenders, and the resignations of two of its top investors could exacerbate the company’s troubles. Financial services firm Deloitte recently resigned as Byju’s auditor because the company had delayed its financial statements for 2021-22 and had not provided documents despite repeated requests. This news came on the same day that three board members, including a representative from Chan Zuckerberg Initiative, had resigned. The initiative has yet to comment on the matter.
Byju’s Responds to Rumours
When asked about the resignations earlier this week, Byju’s denied the claims, calling them “completely speculative.” However, sources have now confirmed that the investors have indeed resigned. Byju’s is reportedly asking the three investors to reconsider their decision to step down from the board.
Investors Seek to Strengthen Internal Controls
Peak XV Partners, one of the investors that has resigned, has stated that it is committed to supporting Byju’s in bringing an independent director onto the board to strengthen the company’s internal control mechanisms. Byju’s has been facing a range of difficulties recently, and the resignation of two key investors may make it harder for the company to overcome these challenges.
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