Byju's Seeks To Raise $1 Billion To Avoid Shareholder Revolt: Report
NDTV
It's unclear whether Mr Raveendran will ultimately secure a capital influx, a critical step in a broader campaign to retain control of a startup once deemed India's most valuable at $22 billion.
Byju's is in advanced talks with prospective new shareholders for a $1 billion fundraising round, seeking to stave off attempts by some investors to clip founder Byju Raveendran's control over the beleaguered tech startup.
Byju's is offering sweeteners, including preferential treatment in the case of liquidation, to win over new backers, people familiar with the matter told Bloomberg, asking not to be named as the information isn't public. None of its existing shareholders have a so-called liquidation preference, the people said. Byju's, which has been trying to raise fresh funds for months, seeks to close a round within two weeks, they said.
It's unclear whether Mr Raveendran will ultimately secure a capital influx, a critical step in a broader campaign to retain control of a startup once deemed India's most valuable at $22 billion. Powerful shareholders and creditors began seeking to dilute his influence after the post-Covid online education market slowed and the startup missed deadlines for filing results and an interest payment on a $1.2 billion loan.
The representatives of three influential backers - Peak XV, Prosus NV and the Chan-Zuckerberg Initiative - quit the board in the same week Deloitte Haskins & Sells resigned as Byju's auditor, underscoring a rapid erosion of trust within the company's ranks.
