Photo credit: Byju’s
Think and Learn, the parent company of embattled edtech company Byju’s, said it is looking to raise US$200 million via a rights issue to “support its ongoing efforts to drive growth and achieve operational sustainability,” it said in a statement.
The fundraise will take place at a valuation of nearly US$230 million, a source close to the company told Tech in Asia. This marks a plunge of nearly 99% from the company’s peak valuation of US$22 billion.
Byju’s said it will primarily use the funding to bankroll its ongoing capital expenditure and support general corporate purposes.
“I am also happy to share that Byju’s is now less than a quarter away from achieving operational profitability,” founder Byju Raveendran said in the statement.
The company’s founders have personally invested US$1.1 billion into Byju’s in the last 18 months, the statement added.
Once the most celebrated edtech company in India, Byju’s has been under mounting scrutiny over its financials and governance amid a severe cash crunch.
Earlier this month, asset manager BlackRock slashed the company’s valuation to US$1 billion. The edtech firm also laid off more than 4,000 employees last year in a major restructuring move.
Editing by Miguel Cordon and Dhania Putri Sarahtika
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