A dramatic turn of events unfolded at Byju’s, once hailed as India’s most valuable startup, as a coalition of investors voted to remove the founder and chief executive, Byju Raveendran. This decision, made at an emergency general meeting on Friday, marks a significant shake-up in the leadership of the edtech giant.

The investors, led by prominent names such as Prosus Ventures and Peak XV Partners, wielded their combined ownership stake of over 60% to push through the resolution for leadership change and to reconstitute the board of directors. Byju Raveendran and other board members notably abstained from attending the meeting.

In a statement provided by Prosus, the shareholder group emphasized the need to address governance, financial mismanagement, and compliance issues within Byju’s. They expressed confidence in the validity of their actions and announced their intention to present the outcome to the Karnataka High Court.

Simultaneously, four investors, representing approximately 25% ownership in Byju’s, filed a suit at the National Company Law Tribunal to halt a recently launched rights issue. This move underscores the deep-seated concerns among stakeholders regarding the company’s direction and decision-making.

The discord among investors has been brewing for over a year, with allegations of accountability lapses against the $22 billion startup. Byju’s, which has amassed substantial funding exceeding $5 billion, faced setbacks in its attempt to go public and has been scrambling to secure new investments.

The recent rights issue, aimed at raising $200 million, was intended to bolster Byju’s financial position. However, doubts persist about the effectiveness of this strategy, with Raveendran urging existing shareholders to participate despite reservations.

Byju’s countered the investor actions, questioning the legitimacy of the resolutions passed at the EGM. They dismissed the decisions as invalid, citing the absence of a significant shareholder presence.

The developments at Byju’s signal a pivotal moment for the company, as it grapples with internal strife amid its quest for stability and growth in the competitive edtech landscape.