Byju's faces boardroom turmoil as three members exit and auditor steps down

Three board members of Ed tech company Byju’s resigned on Thursday, June 22. According to reports, Peak XV Partners' GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have stepped down from their responsibilities from the board. The company spokespersons have denied reports dismissing them as speculative. 

Meanwhile, The Ken has reported that Byju’s auditor’s Deloitte Haskins & Sells had also stepped down with immediate effect and shortly after this news broke, Byju's announced the appointment of a new statutory auditor, BDO MSKA, in a bid to ‘strengthen governance’.

According to the reports, the resignations were the result of differences with the founder regarding the company's approach to key business operations. Following these resignations, the Byju's board will now consist solely of family members of founder Byju Raveendran, including founder Divya Gokulnath, and Riju Raveendran, as reported by Deccan Herald. GV Ravishankar and Vivian Wu have not been available for comment and have not responded to journalists' calls thus far.

MoneyControl has reported that the differences between the board members who resigned and the founder was ongoing for over an year now and also that the resignations have not yet been accepted. The resigning members reportedly felt that the founder did not adequately involve the board and investors in decision-making processes, raising concerns about a lack of transparency, say new news reports. 

Byju's, a Bengaluru-based edtech company established in 2011, is one of India's most successful startups. The company gained unicorn status and achieved a valuation of Rs 6,505 crore in March 2018. Notably, Byju's has also enlisted actor Shahrukh Khan as its brand ambassador.