Edtech giant Byju’s is reportedly in the process of seeking new funding at a valuation of around $2 billion, a significant drop from its peak valuation of $22 billion in early 2022. The company, which disclosed its audited financial results for FY22 on Tuesday after a prolonged delay, is looking to raise $100-$200 million through a rights issue, according to sources cited by TechCrunch.
Byju Raveendran, Co-founder and CEO of the edtech major, is expected to participate in the new funding round. Byju’s has not yet commented on these reports.
Earlier attempts by Byju’s to secure funding in 2022 failed, and the company ended up raising around $150 million. Last year, there were discussions about potentially selling two of its subsidiaries, Epic and Great Learning, to generate between $800 million and $1 billion. This move was reportedly aimed at repaying the company's outstanding $1.2 billion Term Loan B (TLB).
Byju’s had been gearing up for an IPO through a SPAC deal in early 2022, which would have valued the company at approximately $40 billion.
In its delayed FY22 financial results, Byju’s reported operating revenue of Rs 5,014 crore, but losses surged to Rs 8,370 crore from Rs 4,599 crore in the previous fiscal year. Additionally, the US-based investment firm BlackRock recently devalued its holding in Byju's, resulting in a lowered valuation of $1 billion, a significant reduction from the $22 billion valuation in early 2022.
(With Agency Inputs)
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