To alleviate its financial problems, Byju’s which was once considered among the world’s most valuable startups , is now seeking to raise funds at a discount of more than 90% from its previous round.
The besieged Indians startup , asking more than $100 million from existing investors through a fresh issuance of shares slated for next month, at a price that values the firm at less than $2 billion down from $22 billion at its previous round in late 2022.
After several months of fighting with a cash outage, The company will now use the proceeds from the share sale slated for next month to pay off vendors and stabilize the business, sources said.
As per the sources , Byju’s CEO will also participate in the share sale to retain his stake in the company and he has been trying all the luck to keep the company alive & ease off the financial burden.
The firm is in the process of selling its US-based kids’ digital reading platform for about $400 million and is also locked in a legal battle with creditors over a missed interest payment on a $1.2 billion term loan.
Supported by the Chan Zuckerberg Initiative, General Atlantic and Prosus NV, Byju’s which was formally known as Think & Learn Pvt — has claimed billions of dollars to finance a global acquisition spree before it ran into a worldwide tech funding downturn. Several shareholders in the company are expected to participate in the share sale.
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