BENGALURU, India (Diya TV) — Shareholders of Byju’s, India’s once-darling edtech startup, have taken drastic action, voting to remove founder and former CEO Byju Raveendran from his position. This move follows a series of setbacks that have rocked the company, slashing its valuation by 95% from its peak of $22 billion. Byju’s, which gained prominence during the pandemic, is now grappling with alleged accounting irregularities and management issues, prompting a major shakeup in its leadership.

Last week’s extraordinary general meeting saw shareholders, including global investors like Prosus, unanimously pass resolutions calling for governance reform, changes in leadership, and a reconstitution of the board. However, Byju’s has rejected these resolutions, arguing that the meeting was invalid due to a low turnout.

The rise and fall of Byju’s have been remarkable. Founded in 2011 by Raveendran, the company experienced exponential growth with the launch of its flagship product, Byju’s—The Learning App, in 2015. The app quickly gained traction, attracting millions of users and significant investment from both domestic and international sources.

During the height of the pandemic, Byju’s saw a surge in demand for online learning, leading to further expansion and acquisitions. However, as pandemic restrictions eased, the company faced challenges, including layoffs, governance issues, and financial losses. Deloitte, its auditor, resigned, and key board members departed amid concerns about the company’s financial health and governance practices.

Byju’s struggles have not gone unnoticed by investors or the industry at large. The company’s attempts to raise funds and clear liabilities have been met with challenges, including a bankruptcy filing by its U.S. unit. Questions about the company’s future and its ability to regain investor confidence loom large.

Despite these setbacks, Byju’s remains optimistic about its prospects. Co-founder Divya Gokulnath has emphasized the company’s commitment to governance and its focus on rebuilding trust with stakeholders. However, with mounting pressure from shareholders and ongoing legal battles, the road ahead for Byju’s appears uncertain.

As India’s startup ecosystem grapples with the fallout from Byju’s downfall, questions arise about the broader implications for the industry. Will this episode lead to greater scrutiny and reforms? Or will it serve as a cautionary tale for startups chasing rapid growth at any cost?

Only time will tell as Byju’s navigates through turbulent waters, seeking to regain its footing and rebuild its once-stellar reputation.