Byju's is facing investor backlash. In a recent statement, Prosus, one of Byju's biggest investors, said that the company's governance structure has "remained stagnant" and that it has "repeatedly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters."
Prosus' statement is a major blow to Byju's, which is already facing financial challenges. The company has been struggling to grow its user base and has been forced to lay off employees. In addition, Byju's has been criticized for its high valuation and its aggressive acquisition strategy.
The investor backlash is likely to put further pressure on Byju's. The company will need to address the concerns raised by Prosus and other investors if it wants to avoid a further decline in its valuation.
Here are some of the specific concerns that Prosus has raised about Byju's governance:
- The company's board of directors is not independent enough.
- There is a lack of transparency in the company's financial reporting.
- The company has not been able to effectively manage its growth.
Prosus has also expressed concerns about Byju's acquisition strategy. The company has spent billions of dollars on acquisitions in recent years, but it has not been able to integrate these acquisitions effectively.
The investor backlash is a major setback for Byju's. The company will need to address the concerns raised by Prosus and other investors if it wants to avoid a further decline in its valuation.
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