Byju’s, an edtech company, is raising $200 million from all of its equity shareholders through a rights issue. This happens as the Bengaluru-based company prepares to raise more money in an equity round.
According to TLPL’s press release, the planned rights issuance will finance the company’s ongoing capital expenditures and general corporate purposes. According to the company, in the past 18 months, the founders of Byju’s have personally invested over $1.1 billion, demonstrating their commitment to the company.
The founders of the company discussed the difficulties it has been facing lately in a letter to shareholders. Byju’s highlighted the company’s resolve and the difficult decisions made in the company’s best interest, even in the face of a shifting macro environment.
Byju’s added that strategic steps have been made in the last several months to optimize expenses and transform the company into a lean, execution-focused enterprise.
Byju last raised $250 million through a structured credit deal in May 2023. At a valuation of $22 billion, the company completed its most recent equity round in October 2022.
The issue will arise at a post-money valuation of $225 million, which is 99% more than the company’s previous funding, according to a Moneycontrol report, even though Byju’s declined to comment on valuation.
Commenting on the development, Byju Raveendran, Founder of Byju’s, said, “..Along with being a founder, I am also the largest investor in the company. The funds raised will be exclusively utilized to clear immediate liabilities and meet operational requirements, while maintaining the current rights of our valued shareholders. I am also happy to share that BYJU’S is now less than a quarter away from achieving operational profitability, reflecting the effectiveness of our strategic initiatives and the resilience of our business model.”
The fact that Byju’s finally submitted its FY22 results after a 22-month delay is noteworthy. The company’s operating revenue increased by 2.2X in that time. Its losses in FY22, however, increased to Rs 8,245 crore. According to CFO Nitin Golani, OSMO and Whitehat Jr. are responsible for 45% of the company’s losses.
