BYJU’s is planning to raise nearly $1 billion to deal with the financial issues the company is facing. BYJU’s is reportedly talking to new investors to raise $1 billion amid issues with existing investors. The company’s management is seeking fresh investments to calm stakeholders. BYJU’s is also facing trouble with its investors as directors appointed by investors have resigned from their board responsibilities recently. BYJU’s auditor has also resigned citing non-cooperating management and the company has appointed a new auditor.

BYJU’s is ready to offer benefits to the potential investors, including preferential treatment in the case of liquidation, as per a report published by Bloomberg. The funding round could be closed within two weeks. However, the management has not confirmed the reports and have not responded to requests for comments.

Another trouble for the company is declining valuations amid the scandals. The company raised funds in October 2022 at valuation of $22 billion. Global investment group Prosus has reduced the valuation of BYJU’s to $5.1 billion. The Netherlands based investment major is BYJU’s largest stakeholder currently (holding 9.6 percent stake). In November 2022, Prosus had offered BYJU’s a fair valuation of $5.9 billion. In its report issued on June 27, Prosus mentioned, “The group lost significant influence during the current year due to the loss of board representation.” Their representative Russel Deisenstock stepped down from the board three days ago.

If the company manages to close the current funding round in two weeks, the issue with the fair valuation of the edtech major will be clear.

BYJU’s currently has only three board members and all three are founder BYJU Raveendran’s family members. The company is in process of appointing independent directors to its board shortly. Even new investors could get a seat on the board of the edtech major.

Clearly, BYJU’s is facing tough times. TopNews will keep a watch on the new developments.