The rights issue launched by the educational technology company Byju's, aimed at raising $200 million with a substantial 99 percent valuation reduction, has garnered full subscription.
According to a shareholders' letter obtained by IANS, Byju's founder and CEO Byju Raveendran expressed that the $200 million raised through this rights issue would provide the necessary capital to address existing liabilities and fuel the company's growth trajectory, aiming to restore its previous success.
Having been valued at $22 billion during its last financing round in early 2022, Byju's had announced its intention to raise around $200 million through a rights issue last month.
The timing of this announcement coincides with Byju's upcoming extraordinary general meeting scheduled for February 23, during which several major investors will cast their votes to potentially replace the company's leadership and restructure its Board.
Raveendran, in the letter, also pledged to reconfigure the Board and introduce two non-executive directors following the completion of the FY23 Audit, expected to conclude by the end of the quarter.
In a bid to ensure transparency regarding the utilization of the raised funds, Raveendran outlined plans to appoint a third-party agency tasked with monitoring fund usage. This agency will provide quarterly reports to all shareholders within 45 days of each quarter's end, accompanied by insights from the Board.
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