Byju's slashes its valuation by 90% to less than $2 billion in an effort to raise funds

Once considered one of the world's most valuable startups, Byju's is aiming to secure funds at a significant discount of over 90% from its previous round in a bid to address financial challenges.

According to reports, the troubled Ed tech company plans to raise over $100 million from existing investors in the upcoming month through a new share issuance, signaling a valuation drop to less than $2 billion, a substantial decline from its $22 billion valuation in late 2022.

The ed-tech has been chasing new funding for nearly a year now. The startup was close to raising about $1 billion last year, but the talks derailed after the auditor Deloitte and three key board members quit the startup.

Edtech giant grapples with financial challenges

Byju's disclosed an operating revenue of Rs 5,014 crore for the fiscal year 2021-22. However, the edtech giant, a subsidiary of Think & Learn, reported notable losses amounting to Rs 8,245 crore, resulting in a total revenue of nearly Rs 5,300 crore for FY22.

The audited financial statements for the year were filed with the Registrar of Companies (RoC), following their initial presentation to investors in December during the annual general meeting, as reported by The Economic Times (ET).

Despite the financial challenges, Byju's experienced a substantial 119% growth in operating revenue, accompanied by an 80% increase in losses for the fiscal year.