My head is bloody, but unbowed: Byju Raveendran writes to shareholders

Byju Raveendran, the founder and CEO of embattling edtech giant Byju’s, has invoked William Ernest Henley's poignant verse "Invictus" in a recent letter to shareholders, stating, “My head is bloody, but unbowed."

In his missive to shareholders, Raveendran announced the company’s launch of a $200 million rights issue aimed at bolstering ongoing capital expenditure and supporting general corporate objectives.

"In the clutch of circumstance I have not winced nor cried aloud. Under the bludgeonings of chance, ‘My head is bloody, but unbowed,’" he penned.

Raveendran articulated, "We believe an expeditious capital raise will provide the company with the resources it needs to rebuild and scale. This shall be used for the continuation of business operations, to manage obligations and to make the company more sustainable."

Once lauded as India's most-valued startup, Byju's has found itself mired in controversy since the beginning of 2022, grappling with allegations ranging from accounting irregularities and purported mis-selling of courses to widespread layoffs, casting a shadow over its once glittering reputation.

Highlighting the arduous journey, Raveendran acknowledged the daunting challenges faced by Byju’s in recent times, asserting, “While a lot has changed in terms of the macro environment, what remains unchanged is the resolve and belief we have in the mission of the company. In these uncertain times, we have not shied away from taking several tough decisions in the best interest of the company, and we will continue to do so in the coming months.”

"It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organisation, razor-focused on execution," he added.

The founders of Byju’s, as the largest shareholders, have injected over $1.1 billion in the last 18 months alone, according to him.

“This capital raise is essential to prevent any further value impairment and to equip the company with necessary resources to deliver on its mission… We have decided to raise capital using the Rights Issue mechanism, which will offer all our existing shareholders the opportunity to participate in this proposed capital raise, to the extent of their shareholding and beyond,” elucidated Raveendran.

Against a backdrop of successive valuation downgrades by Byju’s’ investors over the past year, the edtech giant's financial woes have continued to deepen. In November 2023, tech investor Prosus dealt a severe blow by marking down the value of its stake in Byju's, precipitating a staggering decline in company valuation to less than $3 billion, an 86 percent plummet from the previous $22 billion evaluation.

More recently, global investment management firm BlackRock, despite holding less than 1 percent stake in Byju’s, further diminished the edtech company's value to a mere $1 billion, sharply contrasting with its peak valuation of $22 billion in early 2022.

The latest blow came as Byju's released its FY22 financials, revealing a significant leap in consolidated revenue by 118 percent from Rs 2,428 crore in FY21 to Rs 5,298 crore in FY22. However, alongside this growth, losses ballooned from Rs 4,564 crore in FY21 to a staggering Rs 8,245 crore in FY22.

Despite these financial disclosures, Byju's filed its FY22 financials with the Ministry of Corporate Affairs (MCA) almost 22 months after the reporting period ended, underscoring concerns about transparency and timeliness in financial reporting. Meanwhile, the audit of its FY23 financials remains pending even as FY24 draws to a close.