Byju's Crisis: Three board members quit, Deloitte parts ways as Auditor
Byju's Crisis: Three board members of Indian startup Byju's have resigned, and Deloitte has resigned as its auditor, according to reports. The key departures come amid the edtech company's disagreement with lenders and after an investor lowered its valuation.
Peak XV Partners' GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have reportedly resigned from the board.
According to the sources, Byju's board currently includes solely the founder's family - Chief Executive Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran.
Separately, Deloitte, one of the world's largest auditing firms, has announced a mid-term departure.
Byju's announced the appointment of BDO as its new auditor, stating that it will assist them in "upholding the highest standards of financial scrutiny and accountability."
According to reports, Deloitte made the decision after Byju's failed to submit some financial statements after repeated requests.
Byju's was valued at $22 billion last year, but Blackrock, a minor shareholder in the company, reduced its valuation to $8.4 billion earlier this year.
Byju's is also embroiled in a legal battle with its lenders, who claim the company hid $500 million, prompting the company to sue Redwood Management, one of its lenders.
The edtech company failed to make a $40 million repayment due earlier this month.
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- With inputs from agencies
