COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
BYJU'S CEO Byju Raveendran in talks to raise his stake to 40% in edtech firm: Report

BYJU'S CEO Byju Raveendran in talks to raise his stake to 40% in edtech firm: Report

The report also revealed that the founder of the edtech major is seeking funds to finance the buyback by using his shares as collateral.

Business Today Desk
Business Today Desk
  • Updated Jan 4, 2023 2:35 PM IST
BYJU'S CEO Byju Raveendran in talks to raise his stake to 40% in edtech firm: ReportThis could estimate to be as much as 15% of the company's stake.

Founder of edtech start-up, BYJU’S, Byju Raveendran is in talks to raise his stake to 40 per cent according to a report by Bloomberg.
 
The sources told Bloomberg that Raveendran is seeking funds to finance the stake repurchases — which could amount to as much as 15 per cent of the firm — by using his shares as collateral. BYJU’S was valued at $22 billion in its last fundraising round. However, the buyback may happen at a lower valuation, the sources stated.
 
Business Today reached out to the company but it was unavailable for a comment.
 
Currently, Raveendran has about 25 per cent stake in the company after infusing about $400 million last year to increase his share in the group holdings. Additionally, BYJU’S has raised $5 billion in total, including all rounds of funding. The report also suggested that the discussions with shareholders and financiers are still in early stages and may yet fall apart, people familiar with the matter said.
 
However, this transaction, if completed, will be a rare instance of an Indian founder-entrepreneur raising ownership in a large start-up. The trend to date has been to give up shares and control in order to maximize funding to propel growth.
 
2022 has been a difficult year for the edtech company. From delayed results, widening losses to the recent allegations imposed by National Commission for Protection of Child Rights, the most valued start-up in India found itself in the middle of several controversies last year. 
 
However, in a letter sent to the employees on the occasion of New Year, Raveendran said that they “are working hard to achieve profitability at the group level in the coming year itself.”
 
Bloomberg also reported that the company is finalising a $1 billion worth initial public offering for its subsidiary, Aakash Educational Services Limited. It may also consider listing its other units in the times to come. 

Advertisement

Also Read: 'Hate is public. Love is private,' says Byju Raveendran in letter to employees

Also Read: ‘It worked out well’: Byju's validates Messi deal in letter to employees post FIFA win

Published on: Jan 4, 2023 1:22 PM IST
Post a comment0