The announcement of a rights issue seems to be little more than a last-ditch attempt to get existing investors to put in money and help clear urgent current liabilities that could land the founders in prison.
I am back with another edition of Things Change. I know what you are thinking: back-to-back editions on education? What are the chances, right? But there’s a lot happening that we need to make sense of. So, here.
Byju’s announced on Monday that its board has approved raising $200 million through a rights issue at a pre-money valuation of around $25 million. To put things in context, the company’s maiden funding round in 2013, in which it raised around Rs 50 crore (around $8 million then) from Ranjan Pai’s Aarin Capital in exchange for a 25% stake, valued the company …
Pradip is a co-founder at The Morning Context and leads our newsletters vertical. He has previously worked at The Ken as a staff writer, at Mint as an assistant features editor and the Deccan Chronicle as a copy editor. He works with a slew of expert newsletter writers across subjects and domains. His own writing spans the gig economy, farmers caught in the crossfire of technology, global warming and parents trapped in the edtech wave. Some of his best stories have come at the intersection of technology and human endeavour.
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