<p>Edtech firm Byju's parent Think & Learn Pvt Ltd on Monday announced that it will raise $200 million through a rights issue to its existing shareholders in a bid to achieve operational sustainability and fund ongoing capital expenditure.</p><p>The round will reportedly be at a post-money valuation of $220-250 million, a 99 per cent drop from a peak of $22 billion fetched during its last equity funding round in 2022.</p><p>After consecutive cuts to its valuation by major investors including Prosus and Blackrock, the firm was noted to be worth $1 billion last year.</p>.Byju’s lenders submit insolvency filing after missed payment. <p>A rights issue is a call for existing shareholders to increase their stake in a company by buying additional shares at a discount. Byju’s rights issue will close by the end of February.</p><p>The founders have already invested $1.1 billion in the embattled firm over the last 18 months, the company said in a statement, adding that it is less than a quarter away from achieving operational profitability.</p><p>"The funds raised will be exclusively utilised to clear immediate liabilities and meet operational requirements, while maintaining the current rights of our valued shareholders," Raveedran said in a letter to the company’s shareholders.</p><p>“It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organisation, razor-focused on execution… This capital raise is essential to prevent any further value impairment and to equip the company with necessary resources to deliver on its mission,” he added.</p><p>Byju’s reported a loss of Rs Rs 8,245 crore in FY22, along with a consolidated revenue jump of 118% to Rs 5,298 crore, according to financials filed last week.</p><p>The company is also dealing with an insolvency petition from overseas lenders that was taken to the court last week, along with a public relations crisis due to mass layoffs conducted since 2022 and allegations of accounting irregularities.</p>
<p>Edtech firm Byju's parent Think & Learn Pvt Ltd on Monday announced that it will raise $200 million through a rights issue to its existing shareholders in a bid to achieve operational sustainability and fund ongoing capital expenditure.</p><p>The round will reportedly be at a post-money valuation of $220-250 million, a 99 per cent drop from a peak of $22 billion fetched during its last equity funding round in 2022.</p><p>After consecutive cuts to its valuation by major investors including Prosus and Blackrock, the firm was noted to be worth $1 billion last year.</p>.Byju’s lenders submit insolvency filing after missed payment. <p>A rights issue is a call for existing shareholders to increase their stake in a company by buying additional shares at a discount. Byju’s rights issue will close by the end of February.</p><p>The founders have already invested $1.1 billion in the embattled firm over the last 18 months, the company said in a statement, adding that it is less than a quarter away from achieving operational profitability.</p><p>"The funds raised will be exclusively utilised to clear immediate liabilities and meet operational requirements, while maintaining the current rights of our valued shareholders," Raveedran said in a letter to the company’s shareholders.</p><p>“It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organisation, razor-focused on execution… This capital raise is essential to prevent any further value impairment and to equip the company with necessary resources to deliver on its mission,” he added.</p><p>Byju’s reported a loss of Rs Rs 8,245 crore in FY22, along with a consolidated revenue jump of 118% to Rs 5,298 crore, according to financials filed last week.</p><p>The company is also dealing with an insolvency petition from overseas lenders that was taken to the court last week, along with a public relations crisis due to mass layoffs conducted since 2022 and allegations of accounting irregularities.</p>