Byju’s, the world’s most useful edtech startup, launched a rights problem on Monday, in search of to lift $200 million because the Indian agency works to deal with its working capital points.
The startup is resetting its valuation to “next to nothing” within the rights problem, the place all present traders have a chance to take part, based on a supply conversant in the matter. If Byju’s succeeds in elevating about $200 million, the valuation of the startup shall be within the vary of $220 million to $250 million, a 99% drop from the $22 billion worth the startup had beforehand attained.
In a letter to shareholders Monday, Byju’s founder Byju Raveendran stated the founders of the edtech group have invested $1.1 billion into the Bengaluru-headquartered startup within the final 18 months and search continued assist from the traders.
“We have made immense personal sacrifices for the sake of the company. We have spent our lives building this company and are fervent believers in its mission,” Raveendran wrote within the letter, seen by TechCrunch.
The rights problem comes as Byju’s seems to safe capital amid a grave funding crunch. The startup, which spent $2.5 billion buying greater than a dozen agency in 2021 and 2022, was valued at $22 billion in early 2022.
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