Page 4 - Great Learning News Today

The shareholders, who have called the EGM, collectively hold more than 30 per cent stake in Byju's

Investors at Byjus are calling for an extraordinary general meeting to oust founder CEO Byju Raveendran and his family members over alleged mismanagement and failures. The shareholders listed financial mismanagement, erosion of value, and concealment of material information as reasons for seeking ouster.

Upgrad cofounder Ronnie Screwvala huddled up with a group of founders and edtech leaders to discuss the way forward from the perception hit, which the sector has taken as a result of the doings of just one company.

Unlike Epic — which is also on the block — the sale of Great Learning is being overseen directly by its founder Mohan Lakhamraju, along with the TLB investors. Byjus is seeking around $600 million from sale of the higher education asset but is yet to find a buyer with a binding term sheet.

The assets, include Great Learning and Epic. Byju’s is reportedly seeking around $600 million from sale of the higher education asset but is yet to find a buyer with a binding term sheet.

The development follows a communication Byju’s sent to its employees in December, assuring that the salaries will be credited the first day of every month

Byjus recently launched a rights issue to raise $200 million from existing investors at $225 million valuation

Rights issues are typically valued much lower than the fair market valuation of a company to attract existing investors to double down on their bet

Investors have 30 days to decide if they want to participate. The steep discount means those who do not participate will face massive erosion of their shareholding.

India’s embattled edtech firm Byju’s is considering a rights issue for existing investors at a $2 billion valuation, according to a source familiar with the company’s plans.