Byju’s Successfully Raises $200 Million Through Fully Subscribed Rights Issue

Byju, an edtech company, has sold out all of its rights issues to generate $200 million at a 99% valuation drop. Byju Raveendran, the founder, and CEO, stated that the $200 million funding will provide the firm with “the capital it needs to ensure that we can take care of the current liabilities and also provide sufficient growth capital to get us back to our previous glory” in a shareholder letter that IANS managed to acquire.

The business, which was valued at $22 billion during its most recent funding round in early 2022, declared last month that it would use a rights issue to raise about $200 million. A couple of Byju’s largest investors will vote to remove the company’s leadership and reassemble the Board of Directors during the company’s extraordinary general meeting on February 23. This announcement precedes the meeting.

In the letter, the CEO also pledged that following the FY23 audit, which the business planned to conclude by the end of the quarter, the board would be reorganized and two non-executive directors would be appointed with the founders’ and shareholders’ permission.

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We shall choose a third-party organization to oversee the use of the cash collected through the rights issue to guarantee transparency. Within 45 days at the end of each quarter, this agency will provide a report to all shareholders, accompanied by commentary from the board, according to Raveendran.