In a bid to address the myriad challenges faced by BYJU’S, CEO Byju Raveendran is reportedly in talks with investors to secure a $300 million infusion into the edtech giant. This move is seen as an effort to gain more significant control in the company amidst ongoing legal and governance troubles.
BYJU’S, a once-thriving edtech decacorn, has encountered a series of setbacks, including legal disputes over loan repayment, financial constraints, extensive layoffs, leadership departures, auditor resignations, and allegations of FEMA violations investigated by the Enforcement Directorate (ED).
According to sources close to the matter, BYJU’S shareholders have been pressing for a board overhaul to assert more influence over the company’s operations. In response, Raveendran has proposed a $300 million cash injection by investors, a move that could potentially grant them a larger shareholding in BYJU’S.
Negotiations are currently underway, and a deal is anticipated to materialize in the coming months, pending agreement on the terms.
BYJU’S has garnered approximately $6 billion in funding from prominent investors such as the Qatar Investment Authority, General Atlantic, Sumeru Ventures, Vitruvian Partners, BlackRock, Peak XV Partners, Chan Zuckerberg Initiative, Tencent, and Tiger Global.
The troubled edtech giant recently faced scrutiny during its annual general meeting (AGM), where stakeholders approved the financial statements for FY22. In a statement issued last month, BYJU’S disclosed that its parent entity, Think and Learn Private Ltd., reported an EBITDA loss of INR 2,253 crore in FY22, excluding acquisitions. The total income for the entity stood at INR 3,569 crore, a significant increase from INR 1,552 crore in the previous fiscal year.
As BYJU’S navigates its complex financial landscape and grapples with legal and governance challenges, the proposed cash infusion aims to provide the company with the necessary resources to overcome its current hurdles.
