Byju Raveendran, the founder of embattling edtech group Byju’s, has made a last-ditch attempt to placate the Indian startup’s disgruntled investors, informing them that the board is weighing an offer of renounced shares to prevent dilution of their holdings.
In an email to shareholders Friday morning, a copy of which TechCrunch has reviewed, Raveendran said the startup’s board is considering to make the offer despite the “animosity” displayed by some of the investors who are pursuing “uncalled for legal actions.”
Raveendran also informed the shareholders that the startup has already received over 50% votes required to increase the authorized share capital in the startup to take into effect the recently raised $200 million via a rights issue. Byju’s is holding an extraordinary general meeting Friday, where it will attempt to pass the resolution over the rights issue.
Prosus Ventures, Peak XV Partners and Chan Zuckerberg Initiative are among the investors who didn’t participate in Byju’s recent $200 million rights issue. The investors have instead sought, using legal means, to remove Raveendran and his family from the startup and to invalidate the rights issue.
“I have always built Byju’s with a spirit of equality and equity, and it has never been my intention to leave any investor behind, regardless of their shareholding size,” Raveendran wrote in Friday email. “From the very inception of this company, my vision has been to take everyone along, from one milestone to another. And it has always been my conviction that we will overcome our challenges together.”
This is a developing story. More to follow.
techcrunch.com
