Byju’s, once valued at over $20 billion, faces a series of challenges as Byju’s founder Raveendran is now barred from leaving the country by the Enforcement Directorate (ED). A lookout circular has been issued, tightening control on his movements.
Previously, the ED had issued a lookout circular ‘on intimation,’ signaling that immigration authorities would notify officials about Raveendran’s foreign trips. However, the recent development allows authorities to prevent him from departing the country.
Byju’s, once an edtech giant, has encountered setbacks, including significant losses and a 90% decline in valuation. It has also seen key investor resignations, including its auditor, Deloitte, and is involved in a legal dispute over a $1.2 billion loan in the US.
Raveendran, once celebrated for his rise, is now under scrutiny. Shareholders sought an extraordinary general meeting to remove him and appoint a new board.
Four investors filed an oppression and mismanagement suit against Byju’s management before the NCLT, seeking the declaration of founders, including CEO Byju Raveendran, as unfit to run the company, and appointing a new board. The suit also challenges the just concluded rights issue.
Investors seeking Raveendran’s ouster allege “mismanagement and failures” and have requested a forensic audit in the plea filed before the NCLT.
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