Some of Byju’s biggest investors have constituted a close group to engage with the company, track its progress, and provide suggestions, according to sources. These investors are some of the edtech major’s biggest investors.
The close investor group, formed a few weeks ago, includes investors such Peak XV, Prosus, General Atlantic, Chan Zuckerberg Initiative, Sofina, and Verlinvest.
This move comes nearly three months after some key investors stepped down from the board of Think & Learn Pvt Ltd, which runs Byju’s, due to differences with founder and CEO Byju Raveendran.
In June, Peak XV’s GV Ravi Shankar, Chan Zuckerberg Initiative from Vivian Wu, and Russel Dreisenstock from Prosus resigned abruptly. Around around this time when Byju’s long-standing auditor, Deloitte, who had been with the company since 2015, cited a delay in releasing the financial results for FY22.
Prosus had issued a statement stating that Byju’s executive leadership consistently disregarded Dreisenstock’s advice and recommendations related to strategy, operations, legal affairs, and corporate governance matters.
Byju’s has been struggling with cash flow issues and n negotiating with lenders to repay the $1.2-billion loan amount to lenders within six months. It has put two of its key assets, Great Learning and Epic, for sale, and expects to get about $800 million.
Recently, the lenders appointed risk advisory firm Kroll to safeguard the company’s assets. The move aimed to discover the real price of Great Learning, particularly in the case of a management buyout.