BYJU’S CEO Seeks $300 Million Investment Amid Legal Challenges and Governance Issues

• ByStartupStory     |    December 26, 2023

BYJU’S CEO Byju Raveendran has reportedly urged the company’s investors to inject $300 million into the firm in exchange for a larger stake. This development comes at a time when BYJU’S is grappling with legal and governance challenges, prompting shareholders to demand a board revamp to exert greater influence on the company’s operations, according to Business Standard, citing a source familiar with the matter.

The source revealed, “Raveendran has asked them to infuse about $300 Mn in return for more control in the firm.” Negotiations are reportedly ongoing, and a deal could materialize in the coming months.

When contacted by Inc42, BYJU’S was not immediately available for comment. To date, the edtech giant has raised approximately $6 billion in funding from prominent investors such as the Qatar Investment Authority, General Atlantic, Sumeru Ventures, Vitruvian Partners, BlackRock, Peak XV Partners, Chan Zuckerberg Initiative, Tencent, and Tiger Global.

In recent times, BYJU’S has faced a series of challenges, including a legal dispute with lenders over the repayment of a $1.2 billion Term Loan B, financial constraints, significant cash burn, workforce reductions, departures of top-level executives, auditor resignations, and the exit of some key stakeholders. Additionally, the company has come under scrutiny from the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA).

BYJU’S held its annual general meeting (AGM) last week, during which stakeholders approved the financial statements for FY22. In a statement last month, BYJU’S disclosed that its parent entity, Think and Learn Private Ltd, reported an EBITDA loss of INR 2,253 crore in FY22, compared to INR 2,406 crore in FY21. The entity’s total income for FY22 was INR 3,569 crore, up from INR 1,552 crore in the previous fiscal year. However, the company did not disclose other key metrics from the significantly delayed financials.

The reported move by Raveendran to seek additional funding underscores the challenges faced by BYJU’S as it navigates a complex landscape of financial, governance, and regulatory issues.

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