Cash-starved edtech giant BYJU’S has kicked off a $200 Mn rights issue to raise funds from its existing investors.
The edtech giant is seeking to raise the fresh capital at a post-money valuation of $225 Mn, a whopping 99% decline from its last valuation of $22 Bn, sources told Inc42.
In a statement, BYJU’S said that the fresh capital will be utilised to fund the ongoing capital expenditure and support general corporate purposes. The rights issue enables existing shareholders to participate in BYJU’S growth journey, it added.
Founder Byju Raveendran said in the statement, “This rights issue is about those who care the most about BYJU’S stepping up as we continue to turn the company around. Along with being a founder, I am also the largest investor in the company. The funds raised will be exclusively utilised 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,” he added.
This is a developing story
The post $22 Bn To $225 Mn: BYJU’S Gets 99% Valuation Cut As It Secures $200 Mn Rights Issue Lifeline appeared first on Inc42 Media.
