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BYJU’S Gets $300 Mn Commitment In Ongoing Rights Issue

Inc42 · 1y ago

BYJU’S Gets $300 Mn Commitment In Ongoing Rights Issue

Parent company Think and Learn, which owns edtech giant BYJU'S, has secured a commitment of $300 million from investors for its ongoing rights issue. The rights issue aims to raise $200 million through equity rights, valuing BYJU'S at $220-250 million. Negotiations are taking place with unhappy investors to encourage their participation in the rights issue. BYJU'S also plans to appoint two independent directors to its board after finalizing its financial results for fiscal year 2023. The troubled edtech firm has faced losses, business model challenges, and conflicts with investors in recent years.

Related News

Byju’s rights issue gets $300 million commitment

Economic Times

Economic Times · 1y ago

Byju’s rights issue gets $300 million commitment

Byju's, the edtech giant, has reportedly secured a commitment of $300 million from investors for its ongoing rights issue. The company had floated a rights issue in January to raise $200 million at a reduced valuation of $220-250 million. Byju's has offered to appoint two independent directors to increase transparency, but only after the rights issue and the declaration of its 2023 fiscal results. Miffed investors are in discussions with Byju's, and if they don't participate in the rights issue, their shareholding will decrease by 50%.

Byju's gets $300 mn rights issue commitment; Sony, Zee resume merger talks

VCCircle

VCCircle · 1y ago

Byju's gets $300 mn rights issue commitment; Sony, Zee resume merger talks

Edtech company Byju's, operating under the brand name Think and Learn, has reportedly received commitments worth $300 million for its ongoing rights issue. The rights issue, aimed at raising $200 million, is set to conclude by the end of February. Additionally, reports suggest that Sony and Zee Entertainment have resumed talks regarding a potential merger.

Beleaguered BYJU’S Gets Shareholders’ Approval For $200 Mn Rights Issue

Inc42 · 1y ago

Beleaguered BYJU’S Gets Shareholders’ Approval For $200 Mn Rights Issue

BYJU’S, the online learning platform, announced that 55% of its shareholders have approved the increase of share capital during a postal ballot and an extraordinary general meeting. This approval now allows BYJU’S parent company, Think & Learn, to issue fresh shares and proceed with its rights issue to address liquidity issues. The startup previously announced a $200 million rights issue, which was fully subscribed despite a significant valuation reduction.

BYJU’s Trims Costs, Vacates 4 Lakh Sq Ft Bengaluru Office Space

Inc42 · 1y ago

BYJU’s Trims Costs, Vacates 4 Lakh Sq Ft Bengaluru Office Space

BYJU'S, the troubled edtech giant, has vacated a 400,000 square feet property at Prestige Tech Park in Bengaluru as part of cost-cutting measures. The rental agreement for the property was terminated earlier this year and the company is also facing disputes with other landlords. Moreover, BYJU'S is dealing with ongoing challenges such as losses, conflicts with investors, and legal disputes. The parent entity, Think and Learn, has secured a commitment of $300 million from investors for an ongoing rights issue. BYJU'S reported a net loss of INR 8,245.2 crore in FY22 due to losses from acquisitions.

Edtech giant Byju's rights issue gets $300 million commitment: Report

IndianStartupNews

IndianStartupNews · 1y ago

Edtech giant Byju's rights issue gets $300 million commitment: Report

Edtech company Byju's has seen a commitment of $300 million from investors for its rights issue, surpassing the initial target of $200 million. Despite a drop in valuation from $22 billion to $220-250 million, the company has received significant funding. To address investor concerns, Byju's has proposed appointing two independent directors to its board, aiming to enhance transparency. However, a group of investors has called for an Extraordinary General Meeting (EGM) to discuss concerns over governance, financial mismanagement, and board restructuring. Byju's plans to use the funds for various purposes amidst ongoing challenges.

$22 Bn To $225 Mn: BYJU’S gets 99% valuation cut as it secures $200 Mn rights issue lifeline

Startup News FYI

Startup News FYI · 1y ago

$22 Bn To $225 Mn: BYJU’S gets 99% valuation cut as it secures $200 Mn rights issue lifeline

Indian edtech giant BYJU'S has launched a $200M rights issue to raise funds from existing investors. The company is seeking the capital at a valuation of $225M, a significant decline from its previous valuation of $22B. The funds will be used for ongoing capital expenditure and general corporate purposes. BYJU'S founder, Byju Raveendran, expressed confidence in the company's turnaround and mentioned that it is close to achieving operational profitability. This development reflects the challenges faced by the cash-strapped edtech industry.

Byju Raveendran Vs Investors: Who Will Emerge Victorious In The Battle Royale At BYJU’S?

Inc42 · 1y ago

Byju Raveendran Vs Investors: Who Will Emerge Victorious In The Battle Royale At BYJU’S?

Indian edtech giant BYJU'S is facing uncertainty as key investors, including Prosus and General Atlantic, contemplate legal action and an extraordinary general meeting to challenge the company's CEO and co-founder, Byju Raveendran. Investors have been demanding a third-party audit of the company's financials for the past two years, citing issues such as opacity in operations and delays in sharing financial statements. The EGM, scheduled for 25 February, could determine the future of BYJU'S, which recently received a $300m commitment in an ongoing rights issue. Prosus is reportedly demanding Raveendran's removal before deciding to participate in the rights issue.

Hostile investors likely to skip Byju’s $200-mn rights issue

Livemint

Livemint · 1y ago

Hostile investors likely to skip Byju’s $200-mn rights issue

Investors in Think and Learn Pvt. Ltd, the parent company of Byju’s, are likely to skip participating in the $200-million rights issue, as they have filed a petition against it, citing oppression and mismanagement. The National Company Law Tribunal has deferred its verdict on the case until next week, allowing Byju's to proceed with the rights issue, which is set to conclude on Wednesday night. Byju's has already secured commitments for the rights issue, but the investors are hoping for a court instruction that the company's founders must seek approval from the existing investor base to expand the share capital.

Top Investors May Opt Out Of Byju’s $200 Mn Rights Issue

Inc42 · 1y ago

Top Investors May Opt Out Of Byju’s $200 Mn Rights Issue

BYJU'S top investors, including Prosus NV, Peak XV Partners, General Atlantic, and Sofina SA, may not participate in the edtech company's $200 million rights issue. These investors collectively hold a 25% stake in BYJU'S parent company, Think and Learn Pvt Ltd, and have filed a petition against the rights issue, citing oppression and mismanagement. Meanwhile, BYJU'S CEO Byju Raveendran confirmed in a letter to shareholders that the rights issue had been fully subscribed. The company's board composition and leadership have also been questioned, with investors calling for an extraordinary general meeting to discuss changes.

Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea

Inc42 · 1y ago

Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea

The National Company Law Tribunal (NCLT) has reserved its judgement on a petition filed by investors, including Prosus and General Atlantic, against BYJU'S CEO and other promoters. The investors are seeking status quo on BYJU'S ongoing $200 million rights issue, claiming it will erode their stakes in the company. The NCLT directed BYJU'S to increase its authorized share capital and park the money raised from the rights issue in a separate bank account. BYJU'S plans to go ahead with the rights issue, stating its importance for the company's survival and employment of 12,000 staff.

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