Byju’s to raise $200 Mn through right issue

Edtech company Byju’s is raising $200 million by way of a rights issue to all its equity shareholders. This comes at a time when the Bengaluru-based firm is eyeing to raise a larger equity round.

The proposed rights issuance by TLPL aims to fund the ongoing capital expenditure and support general corporate purposes, the company said in a press release. As per the company, the founders of Byju’s have already demonstrated their commitment to the firm by personally investing more than $1.1 billion in the last 18 months.

In a note addressed to shareholders, the founders expressed the challenges the company has faced in recent months. Despite the changing macro environment, Byju’s emphasized the company's resolve and the tough decisions made in the best interest of the company.

Byju’s also said that over the last many months, strategic measures have been taken to optimise costs and become a lean organization focused on execution. 

Byju’s last raised $250 million via structured credit transaction in May 2023 while its last equity round came in October 2022 at a valuation of $22 billion.

While Byju’s did not comment on valuation, a  Moneycontrol report highlighted that the issue will happen at a post-money valuation of $225 million, which is 99% than the company's last funding.

Commenting on the development, Byju Raveendran, Founder of Byju’s, said, “..Along with being a founder, I am also the largest investor in the company. The funds raised will be exclusively utilized 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.”

It’s worth highlighting that Byju’s recently filed its FY22 results after 22-month delay. The firm’s revenue from operations spiked 2.2X during the period. However, its losses widened to Rs 8,245 crore in FY22. As per the company’s CFO Nitin Golani, Whitehat Jr and OSMO contribute to 45% of the losses.