Prosus calls for management shakeup as $22 billion company faces insolvency

Prosus joined a group of investors to call for a shareholders meeting to replace the management and board of Byju’s, as the struggling Indian ed-tech startup faces insolvency. 

The shareholders are seeking a change of leadership at Byju’s parent, Think & Learn Pvt., which is led by founder Byju Raveendran, according to a statement on Thursday by a number of major investors that was provided by Prosus. 

“This EGM notice follows many months of continued efforts by shareholders to engage with the company to address persistent issues relating to corporate governance, mismanagement and compliance,” the investors said in the statement.

“These efforts have been ongoing following the resignation from the board in June 2023 of directors nominated by Prosus and other shareholders.”

Prosus owns about 9% of Byju’s, which at one point was valued at $22 billion and among the world’s most valuable startups.

General Atlantic, Peak XV and Chan Zuckerberg Initiative also signed the letter, India’s Mint reported, citing a person familiar with the developments. 

Lenders to Byju’s filed an insolvency petition last week after the startup missed payment on a $1.2 billion loan.

The firm is seeking $200 million by selling new stock to shareholders, it said on Monday. Such a move would slash its value by more than 90%.