Embattled edtech startup Byju's is looking to raise more than $100 million from existing stakeholders but at a steep 90% discount to its $22 billion valuation in its last funding round in 2022, Bloomberg News reported on Tuesday.
Byju's, facing a host of legal and financial woes, is looking to sell fresh shares, including to founder Byju Raveendran, to raise funds to pay vendors and stabilise its business, Bloomberg reported, citing people familiar with the matter.
The pricing of the share issuance, slated for next month, values Byju's at less than $2 billion, down from $22 billion at its previous round in late 2022, the report said. It raised $250 million in that round.
Byju's declined to comment, while Raveendran could not be immediately reached for Reuters' request for comment. Bloomberg did not name the investors likely to participate in the latest round.
Earlier this month, BlackRock slashed Byju's valuation by 95% to $1 billion, while tech investor Prosus NV chopped it to under $3 billion last November.
The valuation cuts came amid media reports that Raveendran pledged his homes for funds to pay staff, following the exit of several Byju executives and board members, prompted by a delay in the company filing its 2021/22 financial results.
Byju's, in November, said it trimmed its operating losses by 6% in 2021-22 for its core online education business, while revenue more than doubled.
