Byju's shareholders clamour for clarity on funds at EGM

Anxious shareholders grilled the founders and the management of edtech giant Byju’s at an emergency meeting on Tuesday, seeking explanations about funds utilization, with some even demanding that founder Byju Raveendran step aside to make room for an interim chief executive officer (CEO).

- Anirudh Laskar & Sneha Shah

According to four people aware of the development, shareholders of the online tutor pressed its leadership for pro-forma financials at the extraordinary general meeting (EGM) following the exit of its long-time auditor and three external directors amid delay in financials and lawsuits in the US.

“Shareholders had called for an emergency EGM, demanding disclosure of pro-forma financials and the end use of the $910 million (part of the $1.2 billion raised via Term Loan B, or TLB), whose status is not clear in the company’s books of accounts," said one of the four people, all of whom spoke on condition of anonymity.

Investors of Think & Learn Pvt. Ltd, which operates Byju’s, are eager to know how the company has utilized the funds raised in a $1.2 billion TLB in 2021 since they have not been getting monthly management information system (MIS) reports from the Bengaluru-based company. MIS statements offer a snapshot of the revenue, expenses, cash flow, and balance sheet, helping investors understand how the business is performing. “The company did not provide any MIS to its investors. That has also been one of the key contentions," the person added.