Byju's seeks $200M in rights issue at 99% valuation cut

https://economictimes.indiatimes.com/tech/startups/byjus-seeks-200-million-in-rights-issue-amid-cash-crunch/articleshow/107230248.cms?from=mdr

by prakhar897 • 2 years ago

23 9 2 years ago

economictimes.indiatimes.com

ravisutrave• 2 years ago

‘Byju’s is an opportunity squandered’: Edtech journalist Pradip Saha on what went wrong

https://www.youtube.com/watch?v=f6LEmND8Xdk

rightbyte• 2 years ago

"In the letter to investors, Raveendran also said the founders have infused around $1.1 billion over the past 18 months"

Sunk cost fallacy? Or delaying criminal charges? There is no way a valuation can drop this much without some serious scam involved.

georgeecollins• 2 years ago

Things can be seriously over valued without a crime being committed. Market euphoria, hucksters who don't exactly lie. Not always a crime but something to be aware of. Valuation is not liquidity.

theogravity• 2 years ago

What is a rights issue? Navigating through the links on the article doesn't explain it.

ActionHank2• 2 years ago

https://www.nseindia.com/products-services/rights-issue

JumpCrisscross• 2 years ago

What is a rights issue?

Stock sold to existing shareholders. It usually means the price is lower than what could have been garnered in the open market.

darth_avocado• 2 years ago

How do your losses in an online ed startup be $1B when the revenue is $0.6B? WTF are you spending that much money on? Offshore retirement accounts for friends and family?

Edit: did some very superficial digging and it looks like they went on a very aggressive acquisition spree. Bought a bunch of other startups for hundreds of millions. https://www.reuters.com/markets/deals/indian-edtech-startup-...

ActionHank2• 2 years ago

Not to mention that the bulk of their employees appear to be based in areas where salaries are comparatively significantly lower than in the US.

This has to be either massively over run cloud expenses or, more likely given the scale of losses, “spent” on expenses that are essentially friends and family.

returnInfinity• 2 years ago

They spent the money on things like Messi, Bollywoord Stars, Circket Stars, FIFA World Cup in the ZERP era.

Byju's seeks $200M in rights issue at 99% valuation cut

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