[Updated] Byju’s denies reports of board members stepping down

Three board members at Byju's have resigned due to differences with the management of the Bengaluru-based edtech firm, according to media reports.

The board members who have stepped down are GV Ravishankar from Peak XV Partners, Russell Dreidenstock from Prosus, and Vivian Wu- Chan Zuckerberg Initiative. ET reported the development first.

Riju Ravindran, Byju Raveendran, and Divya Gokulnath are other remaining members of the board at the company.

“A recent media report suggesting the resignations of board members from BYJU'S is entirely speculative . BYJU'S firmly denies these claims and urges media publications to refrain from spreading unverified information or engaging in baseless speculation…,” said Byju’s spokesperson in an email response to Entrackr. 

The development comes at a time when Byju's is dealing with various issues, including a loan default and mass firings. It also came under the scanner of the Enforcement Directorate over alleged violation of Foreign Exchange Management Act (FEMA). 

Earlier this week, the company was in news for firing at least 500-1,000 employees across several departments including logistics, training, sales, post-sales, and finance.

After failing to make debt installment payments, Byju’s filed a complaint with the New York Supreme Court to challenge acceleration of the $1.2 billion Term Loan B (TLB) and to disqualify lender Redwood for its predatory practice. However, a group of lenders including Redwood termed the suit meritless and an effort to avoid complying with its obligations.

Meanwhile, Byju’s announced that it will launch the Initial Public Offering (IPO) of its subsidiary, Aakash Education Services Limited (AESL), mid next year. According to a report by The Arc, Byju Raveendran himself hold around 30% stake in Aakash.

Update: June 22, 17:44pm IST: Contents including headline of this article have been updated after the comments from Byju’s.