Transparency issues are plaguing Byju’s, India’s most valued edutech company, as representatives from two major institutional investors resign from the company’s board. The first to disclose their reasons was Peak XV Partners (previously Sequoia Capital India). According to sources, Peak XV Partners informed its Limited Partners (LPs) about the departure of their representative, GV Ravi Shankar, from Byju’s board. The reason cited was the lack of transparency within Byju’s, making it challenging to provide necessary business updates and vital information to investors. Furthermore, the company was allegedly dismissing advice and recommendations related to corporate governance, legal, and operational matters, leading Ravi Shankar to believe that he couldn’t fulfill his responsibilities as an investor and board member.
Transparency Issues at Byju’s: Peak XV Partners Reveals Reasons for Board Resignation
Peak XV Partners’ limited partners primarily consist of entities based in the United States, including university and hospital endowment funds. There are indications that Peak XV Partners plans to reduce Byju’s valuation due to uncertainties surrounding audited financials.
GV Ravi Shankar Steps Down from Board
Prosus, the largest institutional investor in Byju’s, also witnessed the resignation of its representative, Russell Drezenstock, from the company’s board last month. Prosus released a statement, revealing similar concerns about the company’s reporting and governance structure. The company claimed that despite providing necessary advice and recommendations, Byju’s ignored them. As a result, Prosus’s representatives couldn’t act in the best interests of the company and its stakeholders, leading to their decision to step down.
