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Ed-Tech Firm Byju’s To Raise $200 Million Through Rights Issue

Indian ed-tech startup Byju’s said on Monday it will raise $200 million through a rights issue of shares to clear “immediate liabilities” and for other operational costs, as the cash-strapped company aims to stabilise its business.

Byju’s, which is backed by investors such as General Atlantic, Prosus and Silver Lake, did not say if they have already approached any shareholders nor at what price or by when it aims to complete the fundraise.

The company has been roiled by a string of setbacks, with the latest being a group of lenders initiating bankruptcy proceedings against it. It has also been negotiating the repayment of a $1.2 billion term loan in the last few months.

Byju’s has been looking to raise more than $100 million from its existing shareholders — but at a steep 90% discount to the $22 billion valuation in its last funding round in 2022 — to pay vendors, Bloomberg News reported last week.

Earlier this month, BlackRock slashed Byju’s valuation by 95% to $1 billion, while tech investor Prosus NV chopped it to under $3 billion last November.

The education firm had also received a notice from India’s financial crime-fighting agency in November to pay a fine over alleged violations of the country’s foreign exchange laws.

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