Once lauded among the world’s most valuable startups, the company is now seeking a lifeline by offering shares at a staggering discount of over 90% from its previous valuation. Insiders reveal that Byju’s aims to secure over $100 million from existing investors, valuing the firm at less than $2 billion, a stark contrast from its $22 billion valuation in the late 2022 funding round.
Byju Raveendran, the eponymous founder, reportedly participates in the share sale to safeguard his stake in the company. Sources, preferring anonymity, indicate that the fund infusion, scheduled for next month, is intended to settle outstanding debts with vendors and stabilize the embattled business, which has been grappling with a prolonged cash crunch. Amid this financial turbulence, Raveendran leaves no stone unturned to steer the company through troubled waters.
The education provider is selling its U.S.-based kids’ digital reading platform for a reported $400 million. Simultaneously, Byju’s is entangled in a legal dispute with creditors over a missed interest payment on a substantial $1.2 billion term loan.
Post-share sale, Byju’s is set to refocus on its core business and intensify efforts in the realm of generative artificial intelligence for hyper-personalized learning.
Backed by heavyweights like the Chan Zuckerberg Initiative, General Atlantic, and Prosus NV, Byju’s had amassed billions for a global acquisition spree before encountering the headwinds of a worldwide tech funding downturn. With shareholders expected to participate in the share sale, the outcome of Byju’s financial saga remains a closely watched development in the tech and edtech realms.
