Peak XV, Prosus flag Byju's lapses for exit

Peak XV Partners (formerly Sequoia Capital India) informed its limited partners (LPs) on Monday that it has resigned from the board of Byju’s due to its inability to influence the management of the edtech firm to improve compliance and governance norms, a person briefed on the letter sent by Peak XV said. The issue also figured in a statement issued by another investor Prosus on Tuesday.

- Sneha Shah & Ranjani Raghavan

Prosus (formerly Naspers) said though Byju’s grew considerably, over time, its reporting and governance structures didn’t evolve sufficiently for a company of that scale.

“Despite repeated efforts from our Director, executive leadership at Byju’s regularly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters. The decision for our Director to step down from the Byju’s Board was taken after it became clear that he was unable to fulfil his fiduciary duty to serve the long-term interests of the Company and its stakeholders," Prosus said.