NEW DELHI: Edtech firm Byju's rights issue to raise $200 million at a 99 per cent valuation cut has been fully subscribed.
In a shareholders' letter accessed by IANS, founder and CEO Byju Raveendran said that this $200 million raise will give the company "the capital it needs to ensure that we can take care of the current liabilities and also provide sufficient growth capital to get us back to our former glory".
The company, valued at $22 billion in its last financing round in early 2022, announced last month that it would raise approximately $200 million through a rights issue.
The announcement comes ahead of Byju's extraordinary general meeting on February 23, at which a few of its biggest investors will vote to oust the company's leadership and reconstitute its Board.
In the letter, the CEO also committed to restructuring the Board and appointing two non-executive directors to the Board by the mutual consent of the founder and shareholders after the FY23 Audit, which the company expected to close by the end of the quarter.
"To ensure transparency with regard to the usage of funds raised through the rights issue, we will appoint a third-party agency to monitor the same. This agency will report to all shareholders on a quarterly basis, within 45 days from the end of the quarter, along with commentary from the Board," Raveendran said.