Byju’s Plans to Raise $200 Million Through Right Issue

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Byju’s, the leading Edtech company, is in the process of securing $200 million through a rights issue extended to all its equity shareholders. This strategic move coincides with the company’s ambitious goal of initiating a more substantial equity fundraising round. The intended rights issuance by TLPL is designed to bolster the company’s ongoing capital expenditures and provide essential support for general corporate initiatives, as outlined in the official press release.

Founders’ Dedication and Personal Investments

According to the company, the founders of Byju’s have unequivocally demonstrated their dedication to the firm by personally injecting over $1.1 billion into the business over the past 18 months.

In a heartfelt letter addressed to shareholders, the founders candidly acknowledged the recent challenges faced by the company. Despite the dynamic shifts in the macro environment, Byju’s underscored its unwavering commitment and the difficult yet necessary decisions taken in the company’s best interests. This commitment, coupled with the founders’ substantial personal investments, reflects Byju’s resilience and determination to navigate through the evolving landscape of the education technology sector.

Byju’s Valuation and Recent Fundraising Success

In May 2023, Byju’s successfully secured $250 million through a structured credit transaction, following its previous equity round in October 2022, where it reached a commendable valuation of $22 billion.

Although Byju’s has refrained from providing an official statement on its current valuation, a report from Moneycontrol suggests that the anticipated post-money valuation for the recent transaction stands at $225 million. This marks a remarkable 99% increase compared to the company’s preceding funding round.

Byju Raveendran’s Investment and Future Financial Direction

Sharing insights on the latest developments, Byju Raveendran, the visionary behind Byju’s, expressed, “In addition to my role as a founder, I proudly serve as the primary investor in our company. The funds procured will be specifically directed towards settling immediate obligations and fulfilling operational needs, all while safeguarding the current rights of our esteemed shareholders. I’m delighted to announce that BYJU’S is on the verge of achieving operational profitability, marking a significant milestone attributable to our strategic initiatives and the robustness of our business model.”

FY22 Financial Results and Impact of Acquired Entities

It’s noteworthy to mention that Byju’s recently disclosed its FY22 results, overcoming a 22-month delay. The company witnessed a remarkable 2.2X surge in revenue from operations during this period. However, it faced an increase in losses, totaling Rs 8,245 crore in FY22. According to the company’s CFO Nitin Golani, 45% of these losses are attributed to Whitehat Jr and OSMO.

Byju’s, a prominent Edtech company, is executing a $200 million rights issue to support its equity shareholders and prepare for a substantial equity fundraising round. The founders have personally invested over $1.1 billion, demonstrating their unwavering commitment amidst recent challenges. Byju’s recently secured $250 million through a credit transaction, anticipating a post-money valuation of $225 million. Founder Byju Raveendran’s primary investment aims to achieve operational profitability. Despite a remarkable 2.2X revenue increase in FY22, losses totaling Rs 8,245 crore, with 45% attributed to Whitehat Jr and OSMO, were reported.

SA Team

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