Edtech major Think & Learn (TLPL), which operates the online education company BYJU’s, has reportedly received a commitment worth $300 million from investors for its $200 million rights issue.
The rights issue, which was announced in January 2024, will end in February-end. The company is also hoping to declare its FY23 results soon and could appoint two independent board directors as well.
A section of investors at BYJU’s have also called for an Extraordinary General Meeting (EGM) on February 23. The agendas for the EGM are issues related to the outstanding governance, financial mismanagement and restructuring of its board. These shareholders are also reportedly seeking the ouster of BYJU co-founder Byju Raveendran, though the company said they had no such right.
“The shareholder's agreement does not give them the right to vote on CEO or management change….TLPL will continue with the proposed $200 million rights issue after receiving encouraging responses from multiple investors. The company is gladened by the support received by a wide section of its shareholders," the company said earlier.
The three board members of BYJU's Byju Raveendran, his wife Divya Gokulnath and brother Riju Raveendran hold around 26% of the company, while the miffed shareholders who called for an EGM own 25% stake.
India's ed-tech major launched a fundraising programme worth $200 million by way of a rights issue on January 29, 2024. The BYJU's had said all its equity shareholders could participate in it.
The purpose of the rights issue, said BYJU's, was to fund its capital expenditure and general corporate purposes, and was aimed at clearing immediate liabilities and meeting operational requirements.
Foreign lenders of BYJU's recently filed also an insolvency plea against the company before the National Company Law Tribunal's (NCLT) Bengaluru last month. They had collectively extended over 85% of BYJU's entire $1.2 billion Term B loan.
Over the past two years, the homegrown ed-tech company has been battling problems on all fronts -- from crash crises to mass layoffs to the violations of FEMA (Foreign Exchange Management Act) rules. Recently, BJYU's had warned about its ability to "continue as a going concern" in the wake of mounting losses and legal issues.
In an emotional letter to BYJU's employees earlier this month, Byju Raveendran had said he had been moving mountains for months to make payroll.
Byju Raveendran-led company, in the latest filing of its audited FY22 financials with the Finance Ministry's Registrar of Companies (RoC), reported a manifold increase in losses worth ₹8,245 crore for the said fiscal year, primarily driven by mounting losses in its two units -- White Hat Jr and OSMO.
