Prosus, Peak XV Partners and the Chan Zuckerberg Initiative confirmed Friday that their representatives have resigned from Byju’s board. Byju’s, India’s most valuable startup, was also affected this week by the departure of auditor Deloitte.
The board member’s resignation, which Byju vehemently denied on Thursday, came shortly after global auditing giant Deloitte told the startup’s board that it would step down from its role. Deloitte, which was due to work with Byju’s until 2025, said the edtech giant failed to file its financial results for the year ending March 2022.
A spokesman for Peak XV Partners confirmed that partner GV Ravishankar had resigned from the Byju board and said the investment giant (formerly Sequoia India) was “committed to supporting the firm in bringing in an independent director to strengthen the business.” processes and internal control mechanisms.”
A spokesperson for Prosus said in a statement:
Prosus confirms that Russell Dreisenstock, director representing MIH Edtech Investments, BV, a Prosus entity, on the board of Think & Learn Private Limited has resigned. The company must submit a letter of resignation to the Indian MCA within the prescribed time limit.
The Chan Zuckerberg Initiative confirmed in a statement that Vivian Wu had resigned from the Byju board. The resignation halved the size of the board, leaving only three people: Byju’s co-founders Byju Raveendran and Divya Gokulnath, and Raveendran’s brother Riju.
A spokesman for Byju said in a statement that the company’s management was working with investors to restructure the board, and said the departing members were leaving because of their reduced stakes.
“As few investors have had to vacate board seats due to holdings below our SHA-mandated minimum threshold, a restructuring is required. We wish to assure all stakeholders that we are actively working to form a A commensurately diverse, world-class board.”
Troubles are also mounting for Byju’s, the world’s most valuable ed-tech company. India’s corporate affairs ministry ordered an investigation into Byju’s last week after it became aware of “various corporate governance failures” at the startup, TV channel CNBC-TV18 reported earlier Friday, while Byju’s denied a separate report.
Deloitte said on Thursday that it resigned because it had not received “any communication” from Byju’s regarding the “audit readiness of its financial statements and related books and records for the year ended March 31, 2022.”
For auditors, it was a moment of déjà vu. Byju’s came under scrutiny from the government, investors and creditors last year for repeatedly failing to publish its accounts. In September, Byju’s finally published its accounts for the year ended March 2021, revealing revenue figures that were lower than its own forecasts.