Byju's, India’s edtech start-up, is in advanced discussions with prospective new shareholders for a $1 billion fundraising round in an attempt to sidestep a revolt by some investors, citing sources news agency Reuters said on Tuesday. According to the report, Byju's is offering benefits to the potential investors, including preferential treatment in the case of liquidation, the report said, adding that none of its existing shareholders have a so-called liquidation preference.
The report by Reuters said that the edtech start-up seeks to close a round within two weeks. The company did not immediately respond to a Reuters' request for a comment.
The report comes days after representatives of three global investors - Peak XV, Prosus NV and the Chan-Zuckerberg Initiative - stepped down from the company without publicly citing reasons, and auditor Deloitte said it was severing ties with the start-up over its "long-delayed" financial statements for the year ended March 2022.
Audit firm Deloitte has resigned as auditors of Byju’s citing a delay in submitting financial statements while almost simultaneously three of its board members resigned which indicated the deepening of the crisis at edutech decacorn.
Byju’s has committed its investor to close the long-pending audit of the financial year 2022 by September and fiscal year 2023 by December, according to sources aware of the development.
In a call with shareholders on Saturday, Byju’s CEO Byju Raveendran admitted his past mistakes and assured shareholders that his learnings far outweigh any missteps. During the call, Raveendran acknowledged the resignation of board members but said that the company has not yet accepted them and information about their resignation was leaked out prematurely.
"Byju Raveendran introduced Group CFO Ajay Goel on the call. Goel has committed to close the audit of financial year (FY) 2022 and FY 2023 by September and December respectively," a person who attended the call told PTI.