Byju’s to raise ₹1,663 crore through rights issue

  • The edtech major is less than a quarter away from achieving operational profitability, says founder Byju Raveendran. Funds raised will be utilised to clear immediate liabilities and meet operational requirements.

Livemint
Updated29 Jan 2024, 04:35 PM IST
FILE PHOTO: Byju's logo is seen in this illustration taken on June 22, 2023. (REUTERS)
FILE PHOTO: Byju’s logo is seen in this illustration taken on June 22, 2023. (REUTERS)(HT_PRINT)

Amid a serious cash crunch, the board of edtech major Byju's parent company Think and Learn Private Limited (TLPL) announced on Monday that the company will raise $200 million ( 1,663 crore) by way of a rights issue to all its equity shareholders. The proposed rights issue by TLPL aims to fund the ongoing capital expenditure and support general corporate purposes, the company said in a release.

The fresh raising of funds comes after Byju's released its audited results for 2022 and reported a significant increase in losses, surging from 4,564 crore to 8,245 crore compared to the previous year. In contrast, the consolidated income witnessed substantial growth, rising from 2,428.39 crore to 5,298.43 crore.

The release from the company said that the founders of Byju's have invested more than $1.1 billion over the past 18 months.

“Over the last many months, strategic measures have been taken to optimise costs and become a lean organisation focused on execution. They stressed the importance of raising capital to create a glide path for strong shareholder value and prevent further value impairment. The letter acknowledged the shareholders' integral role in the company's journey and proposed this rights issue to offer existing shareholders an equal opportunity to participate in the capital raise,” the press release said.

‘Less than a quarter away from profitability,’ says founder

Byju's founder Byju Raveendran said the funds raised would be exclusively utilised to clear immediate liabilities and meet operational requirements. He claimed that the edtech giant is less than a quarter away from achieving operational profitability.

“This rights issue is about those who care the most about Byju's stepping up as we continue to turn the company around. Along with being a founder, I am also the largest investor in the company. The funds raised will be exclusively utilised to clear immediate liabilities and meet operational requirements while maintaining the current rights of our valued shareholders,” Byju's founder Raveendran said.

"I am also happy to share that Byju's is now less than a quarter away from achieving operational profitability, reflecting the effectiveness of our strategic initiatives and the resilience of our business model,” he added.

 

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First Published:29 Jan 2024, 04:35 PM IST
HomeCompaniesNewsByju’s to raise ₹1,663 crore through rights issue

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