With edtech major Byju's set to raise $200 million in funds, the valuation of the cash-strapped company has plummeted by 99 per cent from $22 billion to $220-230 million.
The current fund raising is being carried out through a rights issue to meet the edtech major's operational sustainability after company failed to raise external capital since early 2022. The company had almost finalised a fundraising of $1 billion in 2023 but the talks fizzled out after auditor Deloitte quit the firm.
However, the Byju's founders, who are the company's largest shareholders, have raised more than $1.1 billion capital during this period.
Founder Byju Raveendran said the funds will be utilised to clear immediate liabilities and meet operational requirements, while maintaining the current rights of the shareholders.
“I am also happy to share that Byju's is now less than a quarter away from achieving operational profitability, reflecting the effectiveness of our strategic initiatives and the resilience of our business model,” Raveendran added.