Ed-Tech firm Byju’s plans to raise $200 million through a rights issue.

Indian ed-tech startup Byju’s announced on Monday its plans to raise $200 million through a rights issue of shares. The funds will be used to address immediate liabilities and cover operational costs, as the company aims to stabilize its business. Byju’s, which counts General Atlantic, Prosus, and Silver Lake among its investors, did not disclose whether it has approached shareholders, the price at which it plans to issue the shares, or the timeline for completing the fundraise.

The company has faced several challenges, including lenders initiating bankruptcy proceedings against it and ongoing negotiations for the repayment of a $1.2 billion term loan. To address its financial obligations, Byju’s has been seeking to raise over $100 million from existing shareholders at a significant 90% discount to its previous valuation of $22 billion in 2022, according to Bloomberg News.

In recent months, Byju’s valuation has faced significant downward revisions. BlackRock reduced its valuation by 95% to $1 billion, while Prosus NV lowered it to under $3 billion in November. Additionally, the company received a fine notice from India’s financial crime-fighting agency in November for alleged violations of foreign exchange laws.

Byju’s has been striving to overcome these challenges and secure necessary funding to sustain its operations and meet its obligations.

Ed-Tech firm Byju’s is planning to raise $200 million through a rights issue. The company, which is based in India, has become one of the world’s most valuable ed-tech startups. Byju’s offers a range of online learning programs for students from kindergarten to grade 12, covering various subjects. The funds raised through the rights issue will be utilized to further expand its reach and develop new products. Byju’s has seen tremendous growth in recent years, especially during the COVID-19 pandemic, as online learning gained prominence. This latest funding round is expected to fuel its ambitious expansion plans and strengthen its position in the global ed-tech market.

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