Reliable sources revealed on Thursday that edtech giant BYJU is actively seeking to fund $250 million at a value that is “lower than the $22 billion valuation” it last disclosed as the company battles to repay a $1.2 billion term loan and achieve profitability in 2023. According to sources, the most recent investment round is “in the final stages of discussion and will be closed soon,” according to IANS. BYJU’s chose not to respond to a request for comment right away.
Everything related to BYJU’s Money Raising Round!
The $250 million round, in contrast, comes at a lower valuation and cannot be at a “flat valuation,” according to sources. As a result, the edtech company is unable to raise the $500 million in funding that was widely anticipated, as was previously reported. The recent funding round by BYJU’s was initially reported on by DealStreetAsia. BYJU’s is closing down the coding platform WhiteHat Jr., which it bought for $300 million, as part of a reorganization and cost-cutting effort to become profitable. The corporation had claimed that it was merely optimizing it.
The edtech company BYJU’s also seems unable to meet its March 2023 target for achieving group-level profitability, as it had anticipated in its earnings in October last year, and its quarterly results for the current fiscal year are once again postponed. In the past, sources have informed IANS that despite hundreds of layoffs and deeper budget cuts, the corporation is still struggling to turn a profit as a whole due to growing losses.
Mrinal Mohit, CEO of BYJU’S India division, had stated in October that these measures will enable us reach profitability in the stipulated time frame of March 2023 after laying off 2,500 workers and integrating its operations there. At the group level, BYJU’s had said that achieving “total profitability by March 2023” was its key aim. Yet given that the business is currently battling to stop its losses from escalating, this now seems unachievable.
The business earned ₹4,530 crores in revenue between April and July 2022. After that, the business made no further mention of the pending results. During the fiscal year that concluded on March 31, 2021, the edtech unicorn posted a loss of ₹4,588 crores.