Byju Raveendran said that Byju’s is now less than a quarter away from achieving operational profitability
New Delhi, NFAPost: Amid a cash crunch, the board of Think and Learn Private Limited (TLPL), the parent company of Byju’s, has announced that it has approved raising $200 million via rights issue to all of its equity shareholders.
Byju’s Founder Byju Raveendran said this rights issue is about those who care the most about Byju’s stepping up as the company continues 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,” said Byju’s Founder Byju Raveendran.
Byju’s Founder Byju Raveendran also said that Byju’s is now less than a quarter away from achieving operational profitability.
This comes days after a group of lenders started bankruptcy proceedings against the unicorn. The lenders said their move to file corporate insolvency proceedings against Think and Learn was taken after 16 months of “good faith efforts” on behalf of the company to restructure its loans.
In response, Byju’s Founder Byju Raveendran said, “Initiation of legal proceedings does not reflect the true financial standing of the company.”
Earlier, Byju’s India Chief Financial Officer Nitin Golani said the company needs funds and plans to raise it at a lower valuation to make the offer lucrative for investors and ensure adequate liquidity support for the edtech firm.
“The company’s shareholders are watching the business closely and they understand the company’s worth. If they are offered an attractive valuation in the range of USD 3-4 billion then a lot of investors, who are financial investors, will take up this lucrative offer, invest in the company and provide liquidity support to the company,” said Byju’s India Chief Financial Officer Nitin Golani.
Recently, Blackrock lowered the valuation of the edtech major to less than $1 billion compared to the peak valuation of $22 billion at which the company had raised funds in March 2022. Dutch venture capital Prosus has lowered the valuation of Byju’s to less than $3 billion.
