Byju crisis: Many flaws have been found in the corporate governance of edutech company Byju’s. However, has been cleared of financial fraud. According to the information, during the year-long investigation by the Ministry of Corporate Affairs, no evidence of wrongdoing like misappropriation of funds or manipulation of financial accounts has been found. Let us tell you that the report of the investigators has not been made public yet.
Byju is in trouble
Let us tell you that Byju is facing financial crisis. Apart from this, there is also a dispute going on at the management level of the company. Many investors of the company have opened a front against Byju’s owner Byju Raveendran. In this series, recently investment company Prosus has written off $ 578 million (about Rs 4,800 crore) invested in Think and Learn, the company that operates Byju’s. Prosus’ stake in Think & Learn dropped to 9.6 per cent in September 2022, diluting its significant influence.
Prosus is among the four investor companies that have approached the NCLT against Byju’s management and its $200 million rights issue. Byju Raveendran, after being stuck in financial crisis, had decided to issue a rights issue at a very low valuation with the intention of raising funds. The matter is under consideration of the National Company Law Tribunal (NCLT).
