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Embattled EdTech major Byju’s senior leadership in a letter to the employees said that the firm has secured commitments of over 100 per cent for its proposed rights issue to raise $200 million and has also hit back at the select group of investors of conspiring against the company at a time of crisis
“However, amidst this remarkable achievement, we must address an unfortunate development. Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of Byju’s. We are pained to see this action from a few of the investors who should have supported us in our fight at these challenging times, instead of directly speaking to the media. The founders are the largest investors and the greatest fighters for Byju’s,” the letter said.
The management noted that the $200 million rights issue that was announced earlier this week for existing shareholders has already been oversubscribed.
Artificially induced crisis
“In three short days, since we launched our rights issue, we have already received commitments for more than 100 per cent of the proposed amount. This process will take 25 more days to complete. It will ensure we have enough growth capital and also to meet all operational liabilities,” said the letter.
The management also said there is a delay in salary for January and said it is because of the ‘artificially induced crisis by these select investors’.
The letter to employees comes a day after the latter sought an extraordinary general meeting (EGM) to adopt resolutions on governance, financial mismanagement and compliance issues.
The resolutions being put forward for the EGM are also to reconstitute the Board of Directors so that it is no longer controlled by the founders of Byju’s parent company Think & Learn; and a change in leadership of the company.
“The success of the rights issue will ensure that we have sufficient operational capital to fund our short-term needs from March onwards. This (rights issue) process will take 25 more days to complete. It will ensure we have enough growth capital and also to meet all operational liabilities. This will mark the beginning of the final phase of our recovery,” the management told employees in an email signed collectively.
The email added that the management was ‘pained to see’ investors demanding a step-down of founder and CEO Byju Raveendran.
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