MUMBAI: Troubled edtech
startup
Byju’s offered its disgruntled
investors
another chance to participate in the company’s $200 million
rights issue
to protect their shareholding.
In a letter to
shareholders
on Friday, founder and group CEO Byju Raveendran claimed that the firm has already secured over 50% shareholder votes to increase
authorised share capital
for the issue.
The company held an extraordinary general meeting (EGM) during the day to seek shareholder approval for the same.
“Despite the animosity shown by some of the investors in pursuing uncalled-for legal actions, we continue to show good faith towards all our shareholders and would like all of you to be part of our turnaround story… the board is considering making an offer of renounced shares to existing shareholders to ensure there is no more dilution to their shareholding,” Raveendran said in the letter which was reviewed by TOI. The process of securing votes for raising the authorised share capital started on March 7 through postal ballot and will close on April 6.
The rights issue is crucial for the cash-starved company which has delayed disbursement of full salaries for the month of Feb to a section of its employees. Once valued at $22 billion,
Byju’s
has launched its rights issue at a valuation of $225-230 million – a 99% drop from its peak valuation.
Some of the startup’s investors including Prosus, Peak XV Partners, General Atlantic, Sofina and Chan Zuckerberg Initiative have not participated in the rights issue. Meanwhile, Raveendran and family are investing around $45 million in the issue, sources said.