Byju’s, once a titan in the startup world, is now seeking a lifeline. The edtech giant plans to raise over US dollar 100 million from its current investors, but at a steep price cut, valuing the firm at less than US dollar 2 billion. This is a dramatic drop from its US dollar 22 billion valuation in late 2022.
What happened? According to a report by Bloomberg, Founder Byju Raveendran is set to buy shares in this round to maintain his stake in the company. This move comes as Byju’s grapples with financial woes, intending to use the new funds to pay off vendors and stabilize its operations.
The once high-flying company is selling its US-based digital reading platform for children for about US dollar 400 million and is entangled in a legal tussle over a missed interest payment on a US dollar1.2 billion (Rs 9,980 crore) loan.
Restructuring core business: In a bid to resurrect its core business, Byju’s is now looking to harness generative artificial intelligence for highly personalized learning.
This strategic pivot follows its massive global expansion funded by billions from heavyweights like the Chan Zuckerberg Initiative, General Atlantic, and Prosus NV, which hit a snag amid a global tech funding slowdown. Many shareholders are expected to join this latest funding round.
(The article is published under a mutual content partnership arrangement between The Free Press Journal and Benzinga)
