Founder and chief executive officer of Byju’s, Byju Raveendran, on Monday, thanked shareholders for their continued support and informed them about the company's decision to raise capital through rights issue.In a letter to its shareholders, he admitted that the past few months have been "tough" for the company "as it faces challenges few companies ever have."
"While a lot has changed in terms of the macro environment, what remains unchanged is the resolve and belief we have in the mission of the company," he wrote.
Asserting that in these uncertain times, the company has not shied away from taking several tough decisions, he promised that the company “will continue to do so in the coming months.”
“It has been 21 months since our last external capital raise, during which we have cut our burn and worked to become a lean organisation, razor-focused on execution. The board believes it is imperative that the company raises capital in order to create a glidepath to deliver strong shareholder value. This capital raise is essential to prevent any further value impairment and to equip the company with necessary resources to deliver on its mission,” he wrote.
Thanking the shareholders, Raveendran said, “As we explore all possible avenues, we would like to keep our shareholders apprised of our thought process. We believe an expeditious capital raise will provide the company with the resources it needs to rebuild and scale. This shall be used for the continuation of business operations, to manage obligations and to make the company more sustainable.”
He said the company has decided to raise capital using the rights issue mechanism, which will offer all the existing shareholders the opportunity to participate in this proposed capital raise, “to the extent of their shareholding and beyond.”
According to a Reuters report, the company will raise $200 million through a rights issue of shares to clear "immediate liabilities" and for other operational costs.
“As you know, we as the Founders have infused over $1.1 billion into the company over the past 18 months, as a testament to the steadfast and continuous faith in the business and its mission. We 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. Our enthusiasm and zeal continue unabated,” he wrote, and ended the letter from the lines in the short poem '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."