Statements confirming the 2 board members’ resignation additionally come a day after Byju’s denied the event, calling it speculative.

However, in a late night assertion on June 23, the corporate mentioned, “The management has been engaging with investors in constructive discussions on the reconstitution of the board at Byju’s, including the induction of independent directors. The need for reconstitution arose as few investors had to vacate the board seat due to their shareholding falling below a minimum required threshold as per our shareholder agreement.”

“We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale,” the corporate added.

In an announcement, a spokesperson of Peak XV Partners mentioned, “We verify that GV Ravishankar, MD, Peak XV Partners has resigned from the board of Think & Learn Pvt Ltd. We are dedicated to supporting the corporate for bringing on board an impartial director so as to strengthen enterprise processes and inside management mechanisms.”

The assertion from Prosus additionally confirmed the exit of its consultant Russell Dreisenstock and added that the corporate is required to file the resignation letter with the MCA in India inside the required time interval.

“Prosus confirms that Russell Dreisenstock, the representing Board Director from MIH Edtech Investments, B.V. (a Prosus entity) on the board of Think & Learn Private Limited, resigned from his position. The Company is required to file the resignation letter with the MCA in India within the required time period,” the assertion learn.

Adding to mounting troubles for the world’s most valued edtech firm, Deloitte – its statutory auditor, tendered its resignation with instant impact.

Byju’s appointed BDO (MSKA & Associates) as Deloitte’s alternative and because the firm’s statutory auditors for the yr commencing from FY22 for the following 5 years. BDO may also be the statutory auditor of the consolidated group and can audit IPO-bound Aakash Educational Services.

Also Read: Byju’s CFO was tasked with changing auditor amid deteriorating ties with Deloitte, sources say

Mounting Troubles

The board members’ departure additionally comes at a time when Byju’s is trying to take Aakash Educational Services, its most-successful acquisition so far, public by mid-2024. The board of Byju’s had formally permitted the Aakash IPO in early June.

Earlier this month, Byju’s mentioned that it had filed a case against one of its lenders in the New York Supreme Court difficult the acceleration of the time period mortgage B it raised in November 2021. Byju’s additionally skipped paying $40 million in curiosity that was due on June 5, technically defaulting on the mortgage.

To make sure, Byju’s has been participating in discussions with its lenders since December final yr when the corporate sought simpler phrases on the mortgage as it was trying to save prices with an goal to attain profitability.

But the corporate’s lenders requested for faster half cost of the $1.2 billion mortgage after Byju’s failed to fulfill sure circumstances, together with a September 2022 deadline for submitting its outcomes for the yr ended March 31, 2022, Bloomberg News reported. Earlier this month, the lenders scrapped these negotiation talks after filing a case in opposition to the corporate within the Delaware courtroom.

Byju’s soared to new highs in March final yr, when it raised a large $800 million spherical at a $22 billion valuation. But since then, the corporate has come below fireplace for plenty of causes together with accounting irregularities, tussle with lenders, mass layoffs and mounting losses.

Byju’s has raised $250 million on the similar $22 billion valuation since then, and is in talks to lift $700 million extra on the similar valuation.

Byju’s places of work in Bengaluru have been additionally searched by India’s monetary probe company Enforcement Directorate in April below provisions of the Foreign Exchange Management Act. The firm is but to file audited outcomes for FY22 (2021-22).

For FY21 (2020-21), Byju’s reported an enormous bounce in losses to greater than Rs 4,500 crore, whereas its income dropped marginally, a shock since FY21 was the primary yr of Covid that gave on-line studying firms a shot within the arm.

Founded over a decade in the past by former trainer Byju Raveendran, Byju’s has raised over $5 billion, most of it up to now 5 years.