Byju’s says $200 million rights issue that cuts valuation by 99% fully subscribed

Byju’s, once India’s most valuable startup, has cut its valuation by 99% in a rights issue. The edtech firm is looking to raise $200 million, capital it said was “essential to prevent any further value impairment.” If Byju’s succeeds in raising this amount, the post-money valuation of the startup will be in the range of $220 million to $225 million, a significant drop from the $22 billion value that the startup had attained in 2022. Byju’s founder Byju Raveendran and other founders have invested $1.1 billion into the startup in the last 18 months and seek continued support from the investors to keep the business afloat. The rights issue comes as Byju’s looks to secure capital amid a severe funding crunch. The startup expects the rights issue to close in 30 days.

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