Byju`s Seeks To Raise $100 Million With 90% Valuation Cut: Report

New Delhi: Struggling Indian edtech startup Byju's is seeking to raise over $100 million from current investors but at a significant 90% discount compared to its $22 billion valuation in the last funding round in 2022, as reported on Tuesday.

Byju is facing various legal and financial challenges. It plans to sell new shares, including to its founder Byju Raveendran in order to gather funds for vendor payments and to stabilize its operations, according to a Bloomberg report citing sources. ()

The share issuance scheduled for the next month is expected to value the company at under $2 billion, a significant decrease from its $22 billion valuation in the previous round in late 2022. It raised $250 million, according to the report. ()

Byju's chose not to provide a comment and there was no immediate response from Raveendran. The Bloomberg report did not specify the investors expected to be involved in the upcoming round. In the beginning of this month, BlackRock reduced Byju's valuation by 95% to $1 billion. The tech investor Prosus NV lowered it to less than $3 billion in November of the previous year.

The reductions in valuation occurred following reports in the media that Raveendran used his homes as collateral to secure funds for staff payments. This situation unfolded after the departure of numerous executives and board members prompted by a delay in the company filing its financial results for the fiscal year 2021/22.

The company's core loss expanded by over 61% in fiscal year 2022. Despite a total income that more than doubled as indicated by information from a statement filed by Byju's with the registrar of companies on Tuesday. In November, the company had announced a 6% reduction in the operating loss for its primary online education business in the fiscal year 2021-2022. (With Reuters Input)