Future of Edtech: Embattled edtech BYJU's investors, including General Atlantic, Prosus, PeakXV and Chan Zuckerberg have called for an Extraordinary General Meeting (EGM) on February 23.

As per sources, the EGM started at 9 am.

Agenda items on the meeting, which will not see participation from BYJU's founder Byju Raveendran or any other board member, include the ouster of Raveendran, his wife Divya Gokulnath and brother Riju Raveendran.

The development comes as the Enforcement Directorate has issued a lookout notice against Raveendran, related to a FEMA probe worth Rs 9,300 crore. Raveendran is said to be based in Dubai.  

Raveendran. his wife and brother hold about 26.3 per cent of the parent company of BYJU'S - Think and Learn Pvt. Ltd. The investors who seek their ouster hold over 30 per cent of the company as of June 2022.

Raveendran has written to shareholders, expressing gratitude for their participation in the Rights Issue at a 99 per cent cut, from its $22 billion valuation in 2022 to $200 million, which Raveendran said was “fully subscribed.” 

The embattled edtech had sought an injunction from the Karnataka High Court on the EGM. While the High Court did not restrain the investors from convening for the same, they ruled for the implementation of rules only after the final hearing date in March, as per reports.

A restriction on share transfer as well as changes in shareholder agreement are some of the discussions expected from the meeting. Investors backing the EGM notice include General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands.

The BYJU'S promoters have been accused of fund mismanagement and failures to explain the show cause notice by the ED, pertaining to term loan, non-payment of BCCI and delay in payments of taxes, EPFO and salary or final settlement to employees.

The recourse deliberated will also include barring of share sales, a succession plan with new CEO and CFO for the time being as well as officers for regulatory affairs.