Byju’s has secured a commitment of $300 million for its rights issue, aiming to raise $200 million. Negotiations are ongoing with investors, who have called for an Extraordinary General Meeting to address governance, financial mismanagement, and board reconstitution.
Think and Learn, an edtech company that operates under the BYJU’S brand name,, has secured a commitment of USD 300 million from investors for its ongoing rights issue, set to conclude by the end of February. The rights issue aims to raise $200 million at an enterprise valuation ranging between USD 220-250 million, marking a significant decrease from its peak valuation of USD 22 billion. BYJU’S has offered to appoint two independent directors to address investor concerns regarding transparency, but this would occur only after the conclusion of the rights issue and the declaration of financial results for the fiscal year 2023. Negotiations are underway with disgruntled investors regarding their participation in the rights issue, with failure to invest potentially resulting in a nearly 50% reduction in their shareholding.
BYJU’S is engaged in discussions with dissatisfied investors, who have called for an Extraordinary General Meeting (EGM) on February 23. The EGM notice, backed by investors including General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, requests resolution of outstanding governance, financial mismanagement, and compliance issues, as well as the reconstitution of the Board of Directors. Investors, led by Dutch investment firm Prosus, stated that they had previously requested board meetings in July and December but were disregarded.
BYJU’S investors lack voting rights concerning CEO or management changes as per the shareholder agreement. A representative of one of the investors involved in calling the EGM expressed expectations for additional investors to join the meeting and plan to approach the National Company Law Tribunal to seek the reconstitution of BYJU’s board.
Conclusion
Edtech company, Think and Learn, has secured a $300 million commitment from investors for its rights issue, set to end by February. The rights issue aims to raise $200 million at a valuation between $220-250 million. BYJU’S has offered to appoint two independent directors to address investor concerns, but negotiations are ongoing. Dissatisfied investors have called for an Extraordinary General Meeting (EGM) on February 23 to resolve governance, financial mismanagement, and compliance issues. The investors lack voting rights regarding CEO or management changes.
