Byju’s Seeks to Raise $1 Billion to Sidestep Shareholder Revolt
- Firm offering liquidation preference to potential new backers
- Some existing investors have sought to clip founder’s control
Signage at a Byju's Tuition Center in Mumbai, India.
Photographer: Indranil Aditya/BloombergThis article is for subscribers only.
Byju’s is in advanced talks with prospective new shareholders for a $1 billion fundraising round, seeking to stave off attempts by some investors to clip founder Byju Raveendran’s control over the beleaguered tech startup.
The Indian firm is offering sweeteners, including preferential treatment in the case of liquidation, to win over new backers, people familiar with the matter said, asking not to be named as the information isn’t public. None of its existing shareholders have a so-called liquidation preference, the people said. Byju’s, which has been trying to raise fresh funds for months, seeks to close a round within two weeks, they said.