Three board members of Indian startup Byju’s have quit and Deloitte has stepped down as its auditor, three sources said, key departures amid the edtech company’s disagreement with lenders and when an investor has slashed its valuation.
Peak XV Partners’ GV Ravishankar, Prosus’ Russell Dreisenstock and Chan Zuckerberg Initiative’s Vivian Wu have resigned from the board, three sources familiar with the matter said.
A Byju’s spokesperson called the news of the resignations “entirely speculative”. The company firmly denies these claims, the spokesperson said, adding significant developments or changes within the organization are shared through official channels.
Ravishankar and Wu did not immediately respond to calls and messages and Dreisenstock was not reachable.
The departures mean Byju’s board now consists only of the founder’s family – Chief Executive Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran, the sources said.
Separately, Deloitte, one of the world’s biggest auditing firms, has stepped down mid term, according to two sources familiar with the matter.
Byju’s said it has appointed BDO as the new auditor, adding that this will help it “uphold the highest standards of financial scrutiny and accountability.”
A source with direct knowledge of the matter said Deloitte took the decision as Byju’s did not provide certain financial statements despite repeated requests.
Byju’s was valued at $22 billion last year, but saw its valuation slashed to $8.4 billion earlier this year by Blackrock, a minor shareholder in the company.
Byju’s is also locked in a dispute with lenders, who allege the company hid $500 million, leading it to sue Redwood Management, one of its lenders.
The edtech firm skipped a $40 million repayment due earlier this month.