Byju’s Raises $200 Million Despite Legal Hurdles
Despite facing a new insolvency plea from Glas Trust Company, Byju’s, a major player in the education technology industry, has successfully completed its $200 million rights issue. This move comes as the company grapples with internal challenges, including disagreements with some key investors.
Byju Raveendran, the founder and CEO of Byju’s, has urged all shareholders to participate in the rights issue, emphasizing the importance of collective efforts in company growth. However, the investor group led by Prosus, which has called for Raveendran’s removal, has not shown interest in the rights issue, potentially risking their equity stakes.
Byju’s, valued at $22 billion, aimed to raise funds through the rights issue to address ongoing challenges and secure its financial position. Despite completing the rights issue successfully, the company continues to face pressure from investors seeking leadership changes.
An extraordinary general meeting (EGM) is scheduled, and Byju’s has taken legal steps to challenge resolutions aimed at removing Raveendran. These events underscore the company’s recent governance and financial struggles, impacting its plans for an initial public offering (IPO) and raising concerns among investors.
Despite these challenges, Raveendran remains optimistic about Byju’s strong brand reputation and potential for future growth.
