Prosus NV, an investor in educational startup Byjus, on Tuesday said the troubled company's reporting and governance structure did not evolve sufficiently for a company of that scale and it "regularly disregarded advice" despite repeated efforts by the Dutch-listed technology firm's former director.
Prosus, which this year slashed its valuation of Byju's to $5.1 billion from $22 billion last year, said the decision for its director to step down from Byju's board last month was mainly because he was "unable to fulfil his fiduciary duty to serve the long-term interests of the Company and its stakeholders."
In a statement, Prosus said Byju's grew considerably since its first investment in 2018.
"But, over time, its reporting and governance structures did not evolve sufficiently for a company of that scale," it said.
"Despite repeated efforts from our director, executive leadership at Byju's regularly disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters," it said.
It went on to state that the decision for its director to step down from the Byju's board was taken after "it became clear that he was unable to fulfil his fiduciary duty to serve the long-term interests of the Company and its stakeholders."
"As a shareholder, Prosus will continue to assert its rights, collaborating with other shareholders and government authorities to safeguard the long-term interests of the company and its stakeholders," it added.
Byju's, it said, sits at the intersection of India and education, two very important and strategic areas of investment for Prosus.
"Although we no longer have a representative serving on the Board of the company, we continue to believe in the potential of Byju's and its role in revolutionising access to quality education in India and around the world," it said.
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