Tech3 | Byju's investors oust founder, family; RBI paves way for Paytm to be a TPAP; and more

One quick thing: Google Gemini’s stars seem to be out of alignment. The AI platform has drawn ire from the Indian Govt over an answer on PM Modi.

In today’s newsletter:?

• Byju's investors oust founder-led management
• RBI paves way for Paytm to be a TPAP
• Inside Zomato's Brahmastra

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Byju's investors oust founder-led management

Byju Raveendran and the investors in his namesake edtech firm, Byju's, are engaged in a tug of war.

• In today's round, the investors got the better off the founder and his famil

Driving the news: A group of blue chip investors voted today in favour of ousting CEO and founder Byju Raveendran from the company.

“...shareholders unanimously passed all resolutions?put forward for vote. These included…resolution of the outstanding governance, financial mismanagement and compliance issues, reconstitution of the Board of Directors; and a change in leadership of the company," said a spokesperson from Prosus, the investors that led the EGM.

Meanwhile, four investors of Byju’s – Prosus, General Atlantic, Sofina and Peak XV– with support from others, also moved the NCLT?against Byju’s’ management, an evening before the EGM.

High-drama EGM: The proceedings this morning, however, did not begin smoothly, as unknown individuals allegedly attempted to sabotage the meeting.?

• Sources told us that it took over an hour to complete the roll call and verify attendees, as hundreds of individuals attempted to join the call with fake identities
• People named Sir Michael Knight, Natalia Cruz, Kevin Pietersen and some even impersonating the company’s investors, waited to be admitted to the call

Out of the 170 people who tried to attend the EGM, the number of total joinees came down to 37 before the vote began.

Yes, but: While angry investors remain steadfast in their decision, it might not be the end of the world for Raveendran and his team.

• The resolutions were passed in the absence of the only board members?of Byju’s - Raveendran, his wife and co-founder Divya Gokulnath, and his brother Riju Ravindran

• Ahead of the vote’s results, the company claimed that the resolutions are invalid and ineffective, as at least one founder-director is required to form a valid quorum
• Investor sources said that shareholders holding about 60% stake in Byju's voted in favour of the resolutions, but company sources argued that those in favour of the resolutions only hold about 47% of the shares.

In fact, a Karnataka High Court order earlier also barred enforcing any of the decisions taken in the EGM till the next date of hearing, which is March 13.?

• In the statement after the EGM, Prosus said that investors are confident about the validity of the EGM meeting and its decisive outcome

They also said investors plan on presenting their case to the Karnataka High Court.?

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