Byju’s founder and CEO, Byju Raveendran, wrote a heartfelt letter to shareholders reassuring them about the company’s resilience in the face of recent challenges. Despite a challenging environment, Raveendran drew inspiration from the verses of ‘Invictus’ by William Ernest Henley, “In the fell clutch of circumstance I have not winced nor cried aloud. Under the bludgeonings of chance, my head is bloody but unbowed.”
The letter emphasized the company’s unwavering commitment to its mission, despite recent setbacks. Raveendran acknowledged the challenges but remained confident in the company’s ability to overcome them. “We believe an expeditious capital raise will provide the company with the resources it needs to rebuild and scale,” Raveendran stated, outlining the purpose of the capital infusion.
To address financial constraints, Byju’s board approved a right offering to raise $200 million from existing investors. This decision reflects the company’s commitment to involving loyal shareholders in addressing current challenges. The issue will take place at a post-money valuation of $225 million, which is significantly lower than the previous valuation of $22 billion.
Raveendran thanked shareholders for their continued support and emphasized their important role in the company’s journey. “Our gratitude for your role in our journey remains strong. We know that you have the best interests of the Company in mind and trust that you shall act in good faith to support the Company through this period,” he conveyed in the letter.
The CEO also emphasized the founders’ commitment, with over $1.1 billion invested in the company in the last 18 months. This move demonstrated their unwavering belief in Byju’s business and mission. “We, as the Founders, have made immense personal sacrifices for the sake of the Company. We have spent our lives building this company and are fervent believers in its mission,” the letter read.
The rights issue is viewed as a strategic move to secure the resources required for the company’s operations, manage liabilities, and improve overall sustainability. Byju’s valuation of $225 million demonstrates a rational approach to ensuring financial stability in the coming years.
Raveendran’s letter and the subsequent rights issue demonstrate the company’s commitment to overcoming challenges, keeping shareholders informed, and moving Byju toward a brighter and more sustainable future.