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Byju says Recently a rights issue of $200 million has been launched has been fully subscribed, but the startup’s founder urged some of its key investors to participate amid a rift between the edtech group and some of its largest shareholders.
The Bengaluru-headquartered startup, valued at $22 billion in its last funding round in early 2022, had last month announced that it would seek to raise about $200 million through a rights issue. TechCrunch had earlier reported that Byju’s has reduced the pre-money valuation in the rights issue to $25 million from about $20 million.
A group of investors including Prosus and Peak XV have not yet shown any interest in participating in the rights issue, according to a person familiar with the matter. If they do not participate in the rights issue, they risk losing almost their entire stake in Byju’s.
“Our rights issue has been fully subscribed and my gratitude to our shareholders remains intact,” founder and chief executive Byju Raveendran said in a letter to shareholders on Tuesday. “But my success criterion is the participation of all shareholders in the rights issue. We have built this company together and I want us all to participate in this renewed mission. Your initial investment laid the foundation of our journey and this rights issue will help preserve and create greater value for all shareholders.
This is a developing story. More to follow.
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