Edtech major Byju's to slash $22 bn valuation by 90% to raise fresh funds

Byju's, the Indian education giant once valued at $22 billion, is desperately seeking a financial lifeline. The company is in talks with existing investors to raise over $100 million at a staggering discount of more than 90% from its previous valuation, valuing the firm at less than $2 billion.

This dramatic fall from grace reflects Byju's ongoing financial struggles. The company has been grappling with a cash crunch for months, leading to founder Byju Raveendran taking drastic measures. These include selling its US-based children's reading platform and facing a legal battle over a missed loan payment.

The fresh funds, if secured, will be used to appease vendors and stabilize the business. Raveendran himself plans to participate in the share sale to maintain his stake. Notably, the company intends to refocus on its core business after this round, particularly on leveraging generative AI for personalized learning.

This news paints a concerning picture for Byju's, once considered a shining star in the edtech space. The massive valuation drop signifies investor unease and raises questions about the company's long-term sustainability. While Byju's is attempting a comeback, its success hinges on securing the funds, navigating legal hurdles, and effectively implementing its strategic shift.