New Delhi, Feb 14 (IANS): Ronnie Screwvala, serial investor and Co-founder/Chairperson of edtech platform upGrad, on Wednesday slammed Byju's and its Founder and CEO Byju Raveendran for the company’s downfall, saying that “one rotten apple” in the Indian edtech space should not affect the entire edtech sector.
Speaking at the second edition of the ‘ASU+GSV & Emeritus Summit’ in Gurugram, Screwvala said that Raveendran and investors are collectively responsible for the company's current poor financial condition.
“Investors felt it was more important in board meetings to ask when's your next secondary versus ‘I don't see a CFO’ and so that one single aspect I don’t think is going to hold the whole education sector to ransom,” Screwvala told the gathering.
His comments came ahead of a meeting he called with the founders in Delhi this week to discuss the core issues pertaining to the edtech sector in the country.
The upGrad founder said that investors and board members at Byju’s must ask the right questions and protect their investments.
Screwvala has been vocal in criticising Byju’s as the company, once valued at $22 billion, faces severe cash crunch amid regulatory challenges.
Screwvala earlier took to X (formerly Twitter) to express support for the decision of Byju’s major shareholders to call an extraordinary general meeting (EGM) to oust the current management and reconstitute the board.
“Finally someone smelt the coffee! Hope it’s not a whiff and then whimper but they will stay the course and get this done - for the whole eco-system! For India as an investment destination! For just credibility overall of an otherwise sunrise and sunshine sector,” he posted on X earlier this month.
Byju's had said that investors have no voting rights on CEO change
"Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the Group CEO of Byju's," the company had said in a letter seen by IANS.
Think & Learn Private Limited, the parent company of Byju's, also said it will continue with the proposed $200 million rights issue after receiving encouraging responses from multiple investors.