BYJU’s reporting and governance structures did not evolve sufficiently for a company of that scale, said the company’s biggest institutional investor, Netherlands-based Prosus. In its official statement, Prosus added that executive leadership at BYJU’s regularly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters.
This comes a month after Prosus’ board representative, Russel Dreisenstock, stepped down from the edtech company.
“The decision for our Director to step down from the BYJU’S Board was taken after it became clear that he was unable to fulfil his fiduciary duty to serve the long-term interests of the Company and its stakeholders.,” said Prosus in its statement.
GV Ravi Shankar of Peak XV Partners (formerly Sequoia Capital India) and Vivian Wu of Chan Zuckerberg Initiative and Russel Dreisenstock of Prosus had stepped down from the board of BYJU’s.
On the same day, Deloitte, one of the biggest auditing firms globally, also tendered its resignation, adding to an already long list of troubles for the world’s most-valued edtech start-up.
Prosus, in its statement, added, “Although we no longer have a representative serving on the Board of the Company, we continue to believe in the potential of BYJU’S and its role in revolutionising access to quality education in India and around the world. As a shareholder, Prosus will continue to assert its rights, collaborating with other shareholders and government authorities to safeguard the long-term interests of the Company and its stakeholders.”
Prosus has slashed down its holding in the edtech to 9.67 per cent, in September. Prosus had pegged the fair value of BYJU’s at $5.98 billion last year, much lower than its last official valuation of $22 billion.
BYJU’s had agreed to rework its loan pact with lenders for its $1.2 billion Term B loan. The steering committee of ad hoc term loan lenders, who represent more than 85 per cent of BYJU’s $1.2 billion term loan, announced on Monday that it will work with the edtech giant to sign and complete the term loan amendment by August 3.