Edtech major Think and Learn, which operates under Byju’s brand name, is learnt to have received a commitment of $300 million from investors for its rights issue which will close by the end of February, sources said.

Byju’s floated an equity rights issue in January to raise $200 million at an enterprise valuation in the range of $220-250 million which is a 99 per cent reduction from its peak valuation of $22 billion.

Sources also shared that Byju’s has offered miffed investors to appoint two independent directors but only after the rights issue and declaring its financial result for the 2023 fiscal.

“Byju’s has received a total commitment of around $300 million for the rights as of date. Some investors have also suggested increasing the rights issue size but the priority for the company is to close the existing issue successfully,” said a source.

The source said that negotiation is also on with miffed investors for their participation in the rights issue.

“Byju’s is in discussion with miffed investors also. The company expects that they will also invest, otherwise, their shareholding will reduce by almost 50 per cent,” the source said.

“Byju’s expects to close the FY 2023 financial result in this quarter which will make the company completely compliant with the rules. Thereafter, the company will look to appoint two independent directors to its board. The proposal is part of ongoing discussion with miffed investors who have called for EGM (Extraordinary General Meeting) on February 23,” the source said.

According to a source, the EGM notice has been backed by General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, who jointly account for around 30 per cent stake.

The investors led by Dutch investment firm Prosus in the EGM notice requested the resolution of the outstanding governance and financial mismanagement.

As per the notice, a consortium of Byju’s shareholders had in July and December requested the board of directors for the meeting but it was disregarded.

PTI