Byjus Rights Issue Attracts $300 Million Commitments from existing investors


Think and Learn, the parent company of tech giant BYJU’S, has reportedly garnered a commitment of $300 million from investors for its current rights issue, which is expected to conclude by the end of February.


In January, BYJU’S initiated a rights issue to raise $200 million through equity rights, valuing the enterprise between $220-250 million, as reported by news agency PTI. This valuation represents a significant decline from its peak valuation of $22 billion.


An Extraordinary General Meeting (EGM) is scheduled by BYJU’S for February 22.

According to sources, BYJU’S has received commitments totalling around $300 million for the rights issue. While some investors have suggested expanding the rights issue size, the company focuses on successfully closing the existing issue.

Furthermore, negotiations are ongoing with dissatisfied investors to encourage their participation in the rights issue.


BYJU’S has proposed the appointment of two independent directors to enhance transparency, subject to the declaration of financial results for the fiscal year 2023.

The company expects to finalize its financial results for FY23 within this quarter to ensure full compliance with regulatory requirements. Subsequently, it plans to appoint two independent directors to its board as part of ongoing discussions with dissatisfied investors who have called for an Extraordinary General Meeting (EGM) on February 23.


Investors, including General Atlantic, Peak XV, Sofina, Chan Zuckerberg Initiative, Owl Ventures, and Sands Capital, have expressed support for the EGM notice. Collectively, these investors hold approximately 30% stake in BYJU’S.


Over the past couple of years, BYJU’S has encountered various challenges, including substantial losses, business model hurdles, conflicts with investors, and legal disputes with creditors and vendors.


As reported earlier, BYJU’S is expected to report total revenue of approximately INR 6,500 crore for the financial year 2022-23, marking a 23% increase from the consolidated income of INR 5,298 crore reported in FY22 by its parent company Think & Learn Private Limited.


In FY22, BYJU’S witnessed a significant rise in net loss, reaching INR 8,245.2 crore (approximately $1 billion), attributed partly to the impact of acquisitions such as WhiteHat Jr. Total expenses for the startup nearly doubled to INR 13,668 crore during the same fiscal year.