Byju’s is in advanced talks with new investors to mobilise $1 billion as it reportedly looks to deflect attempts by some of its existing investors to assert themselves in its operations.

A Bloomberg report on Tuesday said the edtech start-up is now offering incentives such as preferential treatment to win potential new shareholders.

While its existing investors do not have such a preferential treatment, Byju’s is looking to close the funding round in two weeks, the report said.

The attempt comes in the wake of representatives of three global investors resigning from its board and its former auditor Deloitte Haskins & Sells quitting last Thursday.

Following the resignation of Deloitte, Byju’s appointed BDO (MSKA & Associates) as the statutory auditor for five years beginning 2021-22.

Last Friday, three global investors which included Peak XV Partners (formerly Sequoia Capital), Prosus (earlier Naspers) and Chan Zuckerberg Initiative confirmed the resignations of their representatives.

Due to these resignations, the board of Byju’s now includes founder Byju Raveendran and his family members Divya Gokulnath and Riju Raveendran.

Byju’s had said in a statement that it is engaged in constructive discussions with investors on the reconstitution of its board and this includes the induction of independent director. It pointed out that the “need for reconstitution arose as few investors had to vacate board seat due to their shareholding falling below minimum required threshold’’.

Subsequently, the company committed itself to its investors that it would close the audit of the financial year 2022 by September and fiscal year 2023 by December.

While Byju’s was last valued at $22 billion, in a fresh disappointment to the start-up, Prosus has marked down the fair market value of its stake. Prosus holds an effective stake of 9.60 per cent.

It had invested a cumulative $578 million since 2018. According to its annual report, the group lost ``significant influence in Byju’s and stopped equity accounting for the company from September 2022”. This was because Prosus’ stake fell below 10 per cent.

Prosus said the fair value of its investment is $493 million as of March 31, 2023. This indicates an enterprise value of $5.1 billion of the start-up.