BYJU'S plans to raise funds at 90% discounted valuation
Embattled edtech unicorn BYJU'S is looking to raise over $100 million from current investors at a massive 90% discount to its previous $22 billion valuation, per Bloomberg. Facing legal and financial hurdles, BYJU'S aims to sell new shares, including some to founder Byju Raveendran, to pay vendors and stabilize its operations. The share issuance, set for next month, values the company at under $2 billion.
Valuation downgrades
Earlier this month, BlackRock cut BYJU'S valuation by 95% to $1 billion, while Prosus lowered it to under $3 billion last November. These reductions came after media reports revealed Raveendran used his homes as collateral for funds to pay employees following the departure of several BYJU'S executives and board members due to a delay in filing its 2021-22 financial results. In November, BYJU'S announced a 6% decrease in operating losses for its core online education business in 2021-22.
BYJU'S financial performance in FY22
BYJU'S today submitted its audited financials for FY22 to the Registrar of Companies (RoC) after a 22-month delay. The company disclosed an operating revenue of Rs. 5,014 crore and losses of Rs. 8,245 crore for FY22. According to the filings, BYJU'S total revenue nearly touched Rs. 5,300 crore. The operating revenue saw a 119% growth in FY22, while losses increased by 80% during the same period.
