February 28, 2024
2 mins read

Byju’s Fund Misuse Claims Surface

Byju’s key investors — Prosus, General Atlantic, Sofina and Peak XV — have moved the tribunal against the embattled edtech major over its $200 million rights issue….reports Asian Lite News

Key investors in Byju’s alleged on Tuesday that the Enforcement Directorate (ED) is investigating diversion of funds of over $500 million by the edtech company to a hedge fund in the US.

In the ongoing hearing at the National Company Law Tribunal (NCLT) in Bengaluru, the investors alleged that the address of the hedge fund was a “pancake shop” and its founder “is a 23-year-old without any training”.

“About $533 million has been siphoned off. He (Byju Raveendran) wants us to invest more money. How will we be protected?”

Byju’s key investors — Prosus, General Atlantic, Sofina and Peak XV — have moved the tribunal against the embattled edtech major over its $200 million rights issue.

During the hearing, the investors claimed that “if the amount is parked in their bank account especially when the man is sitting abroad and is not coming to India, it will become irreversible”.

Earlier in the day, the investors argued that the process adopted by Byju’s for its $200 million rights issue is “in breach of laws”.

They said that the board of directors had to call an Extraordinary General Meeting (EGM) of shareholders before the rights issue so that they could vote.

“The board of directors did not call a general body meeting before rights issues as they are aware that the general body is not in their favour,” argued the lawyer on investors’ behalf.

“Our 25.4 per cent stake will come down to 2.5 per cent if we don’t subscribe to the rights issue. If we subscribe, we don’t know what happens to our money,” the investors said.

Byju’s argued that the investors were “forum shopping” by approaching the NCLT.

“If the NCLT passes any order today, it will dilute the order of Karnataka HC,” the company’s lawyer said.

“The investors are not looking at the interest of 100 million students and the 12,000 employees but only at their value maximisation.”

“It has been 21 months since our last capital raise,” the company added.

ALSO READ: ‘Regulations Propel India to Fintech Pinnacle’

Previous Story

Goyal Calls for Manufacturing Expansion

Next Story

AirAsia Eyes Expansion

Latest from Business

PM Modi: India poised to lead next tech wave

PM Modi underscored that the country is poised to lead the next wave of digital transformation in 5G…reports Asian Lite News Prime Minister Narendra Modi on Wednesday hailed India’s progress in expanding

India Hits 100GW Solar

The expansion is not only in scale but also in quality, with significant capacity dedicated to high-efficiency modules. Many manufacturers have adopted vertically integrated operations, enhancing quality, reducing costs, and improving resilience

Jewellery Exports Shine Bright

The GJEPC noted that product diversification has played a major role in sustaining momentum. Lightweight and contemporary designs are gaining traction among younger global consumers, helping Indian jewellers appeal to a wider

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics
Go toTop

Don't Miss

Byju’s saga maybe a lesson to learn from

The company, which has sacked thousands of employees to date

Byju’s saga maybe a lesson to learn from

The company, which has sacked thousands of employees to date