Member-only story
Court Halts Byju’s Second Rights Issue as $200M Fundraise Falters
Grabbing your morning coffee, you open up your favorite tech news site and see a splashy headline: Byju’s second rights issue has been halted by a court. Intrigued? Well, let’s dive into what went down with one of India’s most high-profile edtech startups.
Byju’s Rights Issue Halted by NCLT
Byju’s, a name you’ve probably heard if you follow tech news, is in some hot water. The National Company Law Tribunal (NCLT) has put the brakes on Byju’s latest attempt to raise funds through a second rights issue. So what’s causing this uproar? Allegations of oppression and mismanagement by its shareholders.
Quick Backstory
Here’s a bit of context. Earlier this year, Byju’s launched its first rights issue in a bid to shore up its finances. But things didn’t go as planned. Several investors kicked up a fuss and the company had to halt the funding process. At its peak, Byju’s was valued at a staggering $22 billion, but now the valuation has tanked to around $25 million. Quite the fall from grace, right?
Second Rights Issue in Limbo
Undeterred, Byju’s decided to give it another go with a second rights issue. However, the NCLT’s recent order means those plans are now on ice.
