Edtech To Raise Funding At 99% Valuation Cut

Share via:


SUMMARY

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

The embattled edtech giant said the fresh capital will be utilised to fund the ongoing capital expenditure and support general corporate purposes

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. This development was first reported by MoneyControl. 

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.

BYJU’S also said that its founders have invested more than $1.1 Bn in the company in the last 18 months. 

The development comes close on the heels of BYJU’S disclosing its consolidated financials for FY22, almost 22 months after the end of the year. The edtech giant’s net loss surged 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21. Operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review, mostly on the back of improvement in the financial performance of Aakash

In the financial statement, the startup’s auditor flagged concerns regarding its continuing net losses from operations and accumulated losses and the outcome of the litigation of the $1.2 Bn Term Loan B availed by Byju’s Alpha Inc. 

BYJU’S has been fighting on multiple fronts for more than a year now. It continues to be plagued by a host of troubles, including the exit of board members, layoffs, delay in filing financial statements, growing losses, scrutiny of the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI).





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Edtech To Raise Funding At 99% Valuation Cut


SUMMARY

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

The embattled edtech giant said the fresh capital will be utilised to fund the ongoing capital expenditure and support general corporate purposes

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. This development was first reported by MoneyControl. 

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.

BYJU’S also said that its founders have invested more than $1.1 Bn in the company in the last 18 months. 

The development comes close on the heels of BYJU’S disclosing its consolidated financials for FY22, almost 22 months after the end of the year. The edtech giant’s net loss surged 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21. Operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review, mostly on the back of improvement in the financial performance of Aakash

In the financial statement, the startup’s auditor flagged concerns regarding its continuing net losses from operations and accumulated losses and the outcome of the litigation of the $1.2 Bn Term Loan B availed by Byju’s Alpha Inc. 

BYJU’S has been fighting on multiple fronts for more than a year now. It continues to be plagued by a host of troubles, including the exit of board members, layoffs, delay in filing financial statements, growing losses, scrutiny of the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI).





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

FSSAI To Meet Ecommerce Execs Over Sale Of Near-Expiry...

SUMMARY To be attended by representatives of Blinkit, Zepto...

Dlocal, inDrive enhance driver payments in Pakistan

The partnership aims to support drivers in Pakistan's...

Election Day: How to follow results on your iPhone

Today is Election Day in the United States,...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!