Byju’s, the world’s most valuable edtech startup, launched a rights issue on Monday, seeking to raise $200 million as the Indian firm works to address its working capital issues.
The startup is resetting its valuation to “next to nothing” in the rights issue, where all existing investors have an opportunity to participate, according to a source familiar with the matter. If Byju’s succeeds in raising about $200 million, the valuation of the startup will be in the range of $220 million to $250 million, a 99% drop from the $22 billion value the startup had previously attained.
In a letter to shareholders Monday, Byju’s founder Byju Raveendran said the founders of the edtech group have invested $1.1 billion into the Bengaluru-headquartered startup in the last 18 months and seek continued support from the investors.
“We have made immense personal sacrifices for the sake of the company. We have spent our lives building this company and are fervent believers in its mission,” Raveendran wrote in the letter, seen by TechCrunch.
The rights issue comes as Byju’s looks to secure capital amid a grave funding crunch. The startup, which spent $2.5 billion acquiring more than a dozen firm in 2021 and 2022, was valued at $22 billion in early 2022.
More to follow.
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