New Delhi, Jan 29
In the letter to shareholders, Raveendran said that the company was launching a $200 million rights issue to fund the ongoing capital expenditure and support general corporate purposes.
"In the clutch of circumstance I have not winced nor cried aloud. Under the bludgeonings of chance, ‘My head is bloody, but unbowed,’" he wrote.
"We believe an expeditious capital raise will provide the company with the resources it needs to rebuild and scale. This shall be used for the continuation of business operations, to manage obligations and to make the company more sustainable," Raveendran added.
He said that the past few months have been tough as Byju’s “faces challenges few companies ever have.”
“While a lot has changed in terms of the macro environment, what remains unchanged is the resolve and belief we have in the mission of the company. In these uncertain times, we have not shied away from taking several tough decisions in the best interest of the company, and we will continue to do so in the coming months,” said the founder.
“It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organisation, razor-focused on execution,” he added.
As the largest shareholders, the founders of Byju’s have invested more than $1.1 billion in the last 18 months.
“This capital raise is essential to prevent any further value impairment and to equip the company with necessary resources to deliver on its mission… We have decided to raise capital using the Rights Issue mechanism, which will offer all our existing shareholders the opportunity to participate in this proposed capital raise, to the extent of their shareholding and beyond,” said Raveendran.
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