- Byju’s seeks $200M infusion amidst financial woes, valuation plunge.
- Capital aims to staunch losses and achieve profitability after a 99% value drop.
- The future is precarious despite the founders’ confidence as the firm restructures.
Byju’s aims to raise $200 million to stabilize finances
Edtech giant Byju’s is aiming to raise $200 million through a rights issue after facing intensifying financial troubles over the past year.
The cash infusion comes as a lifeline for the company’s parent Think and Learn, which has seen Byju’s valuation crater from a peak of $22 billion to just $230 million currently, according to a source close to the negotiations.
Byju Raveendran, founder of the once high-flying startup, stated the new capital will bankroll ongoing expenditures and corporate objectives as the firm charts a road to profitability.
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Byju’s looks beyond financial setbacks
He projects operations to reach sustainability within months. The announcement also underscored founders’ continued confidence, with Raveendran highlighting personal investments of $1.1 billion made over the last 18 months.
The capital raise marks just the latest chapter in Byju’s dramatic reversal of fortunes after years as India’s foremost edtech darling.
Intensifying cash burn and ballooning losses have spurred major restructuring, including laying off some 4,000 employees. Scrutiny of financials and governance has also mounted, with asset manager BlackRock recently slashing the firm’s value to just $1 billion on its books.
Byju’s aims to write its next chapter and deliver on the promise that secured its meteoric rise. But with valuation corrected by over 99%, the road ahead remains filled with challenges.
