BYJU’S, a leading educational technology conglomerate, aims to procure $200 million through an equity rights issue with an enterprise valuation ranging between $220-250 million. Knowledgeable sources revealed that the company intends to offer equity at a modest valuation solely for this particular round of issuance.

 

Back in March 2022, BYJU’S witnessed a pinnacle in its valuation, soaring to $22 billion during its fundraising endeavor. “The Think and Learn Private Limited (TLPL) board has officially initiated a $200 million fundraising effort through a rights issue, extending the offer to all its equity stakeholders to bolster its continuous pursuit of expansion and sustainable operations,” as stated by the company. Insider information suggests that the issuance is slated to conclude by February’s end.

“In this round of rights issuance, BYJU’S plans to secure $200 million within the valuation bracket of $220-250 million. Although the firm’s overall valuation is considerably higher, the stipulated valuation of $220-250 million applies specifically to this rights offering,” cited a reliable source.

The corporation emphasized that TLPL’s proposed rights issuance aims to cater to ongoing capital expenses and provide backing for general corporate endeavors.

 

“As the principal stakeholders, the founders of BYJU’S have already showcased their allegiance to the enterprise by injecting over $1.1 billion personally within the last 18 months,” the official statement affirmed.

 

A communiqué has been dispatched to shareholders delineating the rights issue, wherein the founders elucidated the tribulations encountered by the enterprise in recent times and reiterated their unwavering dedication to BYJU’S mission. Despite the shifting macroeconomic landscape, they underscored the company’s determination and the resolute decisions made in its best interests.

 

The letter acknowledged the indispensable role played by shareholders in the company’s odyssey and advocated for this rights issue to extend existing shareholders an equal opportunity to partake in the capital augmentation.

 

“This rights offering epitomizes the commitment of those deeply invested in BYJU’S as we persevere in steering the enterprise towards success. In addition to being a founder, I am also the foremost investor in the company. The funds procured will be solely allocated to clearing immediate obligations and fulfilling operational requisites, while upholding the current entitlements of our esteemed shareholders,” articulated BYJU’S Founder Byju Raveendran.

 

He asserted that BYJU’S is on the brink of attaining operational profitability, with less than a quarter remaining, which attests to the efficacy of the company’s strategic maneuvers and the resilience of its business paradigm.

 

BYJU’s recently unveiled its financial outcomes following a delay of approximately 22 months, during which it recorded a widening operational deficit of Rs 6,679 crore in FY22, primarily attributable to losses incurred by subsidiaries White Hat Jr and Osmo.

As per its regulatory filing, the company incurred an operational deficit (EBITDA) of Rs 4,143 crore in FY 2021. Its revenue surged twofold to Rs 5,298.43 crore in FY22 from Rs 2,428.39 crore in FY21.