Byju’s says its recently launched $200 million rights issue has been fully-subscribed, but the startup’s founder urged some of its major 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 financing round in early 2022, announced last month that it would attempt to raise about $200 million through a rights issue. Byju’s cut the pre-money valuation ask in the rights issue to about $20 million to $25 million, TechCrunch earlier reported.
A group of investors, including Prosus and Peak XV, have yet to show any interest in participating in the rights issue, according to a person familiar with the matter. If they don’t participate in the rights issue, they risk losing nearly all their stake in Byju’s.
“Our rights issue is fully subscribed and my gratitude to my shareholders remains strong,” founder and chief executive Byju Raveendran wrote in a letter to shareholders Tuesday. “But my benchmark of success 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 for our journey and this rights issue will help preserve and build greater value for all shareholders.”
This is a developing story. More to follow.