Byju Raveendran seeks funding to buy back up to 15% of edtech company: Report
BYJU'S founder is seeking funds to finance the buyback by using his shares as collateral, according to a report.
Byju Raveendran, Founder and CEO of , is in talks to raise his stake in the edtech company to as high as 40% and may also offer exits to some investors in the firm.
According to a Bloomberg report, the founder is seeking funds to finance the buyback of stakes in the company by using his shares as collateral. The stake repurchases could amount to as much as 15% of the edtech company, it added.
The edtech decacorn BYJU’S was valued at $22 billion the last time it raised funds. However, the buyback may happen at a lower valuation, the report noted, adding that discussions with shareholders and financiers are still in the early stages and may yet fall apart.
Byju Raveendran has approximately a 25% stake in the company. The edtech firm has raised a total funding of $5.08 billion over 27 rounds, as per Tracxn. In October last year, BYJU'S raised $250 million in a funding round from its existing investors, including Qatar Investment Authority.
According to another report by Bloomberg, BYJU’S is also in conversations with creditors to rework a $1.2 billion loan raised in 2021.
Recently, in an internal email to his employees, Byju Raveendran said the company had shifted its sales model to inside sales and was targeting profitability at a group level in 2023.
BYJU’S losses grew nearly 20X to Rs 4,588 crore in FY21 compared to the previous year, while its total income stood at Rs 2,428 crore.
Edited by Suman Singh
