"Byju's Faces Financial Struggles: Cuts Valuation, Launches Rights Issue, and Reports Record Losses"

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Source: TechCrunch
"Byju's Faces Financial Struggles: Cuts Valuation, Launches Rights Issue, and Reports Record Losses"
Photo: TechCrunch
TL;DR Summary

Byju's, the world's most valuable edtech startup, has launched a rights issue to raise $200 million, cutting its valuation ask by 99% in an effort to address its working capital needs. The post-money valuation of the startup is expected to drop to $220-250 million, a significant decrease from its previous $22 billion valuation. Byju's founder Byju Raveendran has appealed to shareholders for support, citing personal sacrifices made for the company. The startup's struggles to raise capital come amid a severe funding crunch, with its IPO plans put on hold due to market conditions.

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