Troubled edtech major BYJU’S CEO Byju Raveendran has reportedly asked its investors to infuse $300 Mn into the company in lieu of larger shareholding in the company.
The recent development comes at a time when BYJU’S is facing multiple legal and governance hassles, with the edtech company’s shareholders insisting on revamping the board.
The company’s shareholders have asked Raveendran to revamp the board so that they can have a bigger say in company operations, Business Standard reported, citing a source close to the matter.
“Raveendran has asked them to infuse about $300 Mn in return for more control in the firm,” the person added.
The matter is reportedly under negotiations and a deal might materialise in a few months.
BYJU’S wasn’t immediately available to confirm the matter to Inc42.
Till date, the beleaguered edtech decacorn has raised around $6 Bn in funding so far from marquee investors including the Qatar Investment Authority, General Atlantic, Sumeru Ventures, Vitruvian Partners, BlackRock, Peak XV Partners, Chan Zuckerberg Initiative, Tencent, and Tiger Global.
In the recent past, BYJU’S has found itself embroiled in multiple problems, including a legal battle with its lenders over the repayment of its $1.2 Bn Term Loan B, severe funding crunch, cash burn, mass layoffs, top-level leadership exits, auditor’s resignation, and the resignation of some top stakeholders. It has also come under the Enforcement Directorate’s (ED) radar for alleged FEMA violations.
BYJU’S held its annual general meeting (AGM) last week where the stakeholders approved its financial statements for FY22.
BYJU’S said in a statement last month that excluding all acquisitions, its parent entity – Think and Learn Private Ltd – reported an EBITDA loss of INR 2,253 Cr in FY22, which stood at INR 2,406 Cr in FY21.
The entity’s total income stood at INR 3,569 Cr in FY22 as against INR 1,552 Cr in the previous fiscal year, it said without revealing other important metrics of the significantly delayed financials.
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