Byju Raveendran to increase his stake in company to 40%
- ByStartupStory | January 4, 2023
According to people familiar with the situation, Byju Raveendran, the founder of the world’s most valuable edtech startup Byju’s, is in financing talks to increase his stake in the company to as much as 40%.
According to the sources, the former teacher is looking for funding to finance the stake repurchases, which could amount to up to 15% of the company, by using his shares as collateral. Byju’s was valued at $22 billion the last time it raised funds, though the buyback may take place at a lower valuation, according to the people, who asked not to be identified because they were discussing private negotiations.
According to the sources, discussion with shareholders and financiers are still in their early stages. Tracxn claims, Byju’s has raised more than $5 billion to date.
Raveendran is in the process of overhauling the company’s strategy and reducing marketing spending in order to achieve profitability by March. Last spring, he announced a $400 million investment in his namesake startup, increasing the founder group’s stake by 2 percentage points to around 25%.
Founded in 2011 as Think and Learn Pvt Ltd., the edtech startup founders Byju Raveendran owns approximately 25% of the company, and other notable investors include the Chan Zuckerberg Initiative, Sequoia Capital India, Blackrock Inc., and Silver Lake.
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