Byju’s disregarded advice: Prosus

New Delhi Prosus NV, an investor in educational startup Byjus, on Tuesday said the troubled company’s reporting and governance structure did not evolve sufficiently for a company of that scale and it regularly disregarded advice despite repeated efforts by the Dutch-listed technology firm’s former director.

Prosus, which this year slashed its valuation of Byju’s to $5.1 billion from $22 billion last year, said the decision for its director to step down from Byju’s board last month was mainly because he was unable to fulfill his fiduciary duty to serve the long-term interests of the Company and its stakeholders.” Byju’s spokesperson said: “We have noted the observations of our valued investors. We have updated our shareholders about definitive steps taken to improve corporate governance and financial reporting.”

In a statement, Prosus said Byju’s grew considerably since its first investment in 2018. “But, over time, its reporting and governance structures did not evolve sufficiently for a company of that scale,” it said.

“Despite repeated efforts from our director, executive leadership at Byju’s regularly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters,” it said.

It went on to state that the decision for its director to step down from the Byju’s board was taken after it became clear that he was unable to fulfil his fiduciary duty to serve the long-term interests of the Company and its stakeholders.