Edtech giant BYJU'S secures funding but faces investor push for transparency and control
Educational technology company Think and Learn, the parent entity of BYJU’S, is said to have secured a commitment of $300 million from investors for its ongoing rights issue, scheduled to conclude by the end of February.
Insiders with knowledge of the situation disclosed that BYJU’S initiated a rights issue in January, aiming to generate $200 million through an equity rights offering with an enterprise valuation ranging from $220 million to $250 million. This valuation represents a notable decrease from its earlier peak valuation of $22 billion.
According to the PTI report, sources have indicated that the edtech company has suggested to investors dissatisfied with its operations that they have the option to appoint two independent directors to enhance transparency. However, the company has requested investors to defer this approval until the completion of the rights issue and the announcement of its financial results for the fiscal year 2022-23.
The edtech firm is set to conduct an extraordinary general meeting (EGM) on February 22, which is a shareholder gathering held outside the regular annual general meeting (AGM) schedule.
According to the notice, a group of BYJU’S shareholders had previously made requests for the EGM in both July and December. However, these requests were reportedly ignored by the board of directors.
It’s worth noting that, in accordance with the shareholder’s agreement, investors in BYJU’S do not possess voting rights pertaining to changes in the CEO or management.
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