Days after Netherlands-based venture capital investor Prosus explained the rationale behind its Director Russel Dreseinstock choosing to step down from board leading Byju's, another VC firm has highlighted its reasons behind making a similar decision.
Peak XV Partners, also known as Sequoia Capital India, sent a letter to its Limited Partners (LP) that GV Ravishankar's decision to separate from Byju's was because of lack of transparency from the company on business updates and information to investors.
“The marking down of our investments reflects our lack of visibility into BYJU’S up-to-date audited financials and our inability to influence it to take corrective measures," read the letter to the LPs, as per reports. According to Peak XV, the Byju's management did not take into account the advise provided by Ravishankar.
Prosus Director Dreseinstock also had to come clean on his decision to move away from Byju's as he highlighted that he was not able to fulfil his f duty to serve the company's long term interests.
According to Prosus, advise of its representatives on strategic, operational, legal, and corporate governance matters were often ignored and stated that they plan on marking down the valuation of their investment in Byju's.
“We plan on significantly writing down our investment in the company in the coming reporting cycle," said the letter.
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