BYJU’S regularly disregarded advice, says global investor Prosus

Reacting to the statement, BYJU’s has said it updated shareholders about the definitive steps it has taken to improve corporate governance and financial reporting. It added that it has noted the observations of its valued investors.

Prosus' statement comes at a time when the country’s most-valued unicorn is under pressure to improve its reporting and corporate governance standards after the resignation of its auditor and the exit of its three investors from the board.

Prosus is the only investor that has come out with a statement on the alleged reporting and governance issues at the edtech.

The resignations of GV Ravishankar of Peak XV Partners, earlier Sequoia Capital India, Russell Dreisenstock of Prosus, and Chan Zuckerberg Initiative's Vivian Wu mean BYJU’S board now only comprises the founder's family.

Prosus said the company continued to believe in the potential of BYJU’S and its role in revolutionising access to quality education around the world. "As a shareholder, Prosus will continue to assert its rights, collaborating with other shareholders and government authorities to safeguard the long-term interests of the company and its stakeholders,” it said.

Meanwhile, BYJU’S has constituted a board advisory committee to steady the ship. Former BI chairperson Rajnish Kumar and early backer TV Mohandas Pai are on the panel that has been tasked to steer the company to clear waters.

Also, earlier in June, BYJU’s and its lenders filed lawsuits against each other in the US courts as tensions escalated with the edtech missing a $40-million interest repayment.

It's been known that BYJU’s has been suffering a cash crunch and $700 million in funding is yet to fully come in. So, to conserve costs, BYJU’s also laid off more than 3,500 employees since last year.