Byju's seeks $200M in rights issue at 99% valuation cut(economictimes.indiatimes.com)
economictimes.indiatimes.com
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
10 comments
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.
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.
"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.
Sunk cost fallacy? Or delaying criminal charges? There is no way a valuation can drop this much without some serious scam involved.
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.
‘Byju’s is an opportunity squandered’: Edtech journalist Pradip Saha on what went wrong
https://www.youtube.com/watch?v=f6LEmND8Xdk
https://www.youtube.com/watch?v=f6LEmND8Xdk
What is a rights issue? Navigating through the links on the article doesn't explain it.
> 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.
Stock sold to existing shareholders. It usually means the price is lower than what could have been garnered in the open market.
They spent the money on things like Messi, Bollywoord Stars, Circket Stars, FIFA World Cup in the ZERP era.
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-...