Indian startup Byju’s loses board members in latest setback

Bengaluru: Think & Learn lost three board directors representing its most prominent shareholders, the latest setback for the troubled Indian ed-tech firm better known as Byju’s.

Russell Dreisenstock, a Prosus executive who represents the investment firm on the startup’s board, has resigned from his position, Prosus said in an e-mailed response to questions. It added that the company is required to file a resignation letter with India’s Ministry of Corporate Affairs “within the required time period.”

Vivian Wu, a managing partner of ventures for the Chan Zuckerberg Initiative, and GV Ravishankar, a managing director at Peak XV Partners, also stepped down from the board, their companies confirmed in separate statements.

The resignations will add to challenges for Byju’s, after its auditor Deloitte Haskins & Sells quit the startup earlier this week. The company, started by former teacher Byju Raveendran, hasn’t been able to deliver its financials on time and its offices were also searched by anti-money laundering officials in April.

Euronext-listed Prosus owns 9.7 per cent of Byju’s, a stake that it valued at $578 million at the end of last year. The once high-flying ed-tech startup had reached a valuation of $22 billion at one point.

Demand for online tutoring fell flat after Covid-19 restrictions were dropped and schools reopened. Byju’s has for months been in talks with lenders of its $1.2 billion debt after it breached investor protections by missing the deadline to disclose annual financial results.