Rights issue caps Byju's wild ride from top startup to throwaway valuation
Live MintOnline tutor Byju’s has agreed to a post-money valuation of $225 million as it approaches existing investors for $200 million to stay afloat, two people aware of the matter said, a stunning decline from the $22 billion it commanded as the country’s most valued startup just two years ago. “The funds raised will be exclusively utilized to clear immediate liabilities and meet operational requirements, while maintaining the current rights of our shareholders," founder Byju Raveendran said in a media statement. Byju’s has around $100-125 million of outstanding liabilities, one of the two people cited above said, adding, “The company will use the remaining to pump into the company for growth purpose." “As the largest shareholders, the founders of Byju’s have already demonstrated their commitment to the company by personally investing more than $1.1 billion in the last 18 months," the letter said.
History of this topic
NCLT halts Byju’s second rights issue, freezes funds pending litigation
Live Mint
Byju’s faces allegations of violating NCLT orders on rights issue; company denies
Hindustan Times
Byju's CEO Raveendran says can't pay workers' salaries, investors blocked funding
Hindustan Times
Investors accuse Byju's of siphoning $533mn, seek stay on rights issue
Hindustan Times
As Byju's CEO Raveendran faces ouster, edutech firm gets ₹2,500 crore push
Hindustan Times
Shareholders ask Byju Raveendran to step down
Live Mint
Byju’s likely to slash its valuation by 90% to raise fresh funds
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