Key Points
It is probably a good thing, then, that global investors are getting a timely reminder of what can happen when they rush into what looks like the next big thing without doing their homework..
Byjus, the education-technology company that was once Indias most valuable startup, is planning to raise funds at an implied valuation of $250 million or lessroughly 99% lower than the $22 billion it was valued at as recently as late 2022..
The new rights issue would raise $200 million on an implied valuation of $220 million-$250 million, according to the company, meaning that many existing investors would essentially be wiped out if they dont participate in the new round..
Last week, a group of investors that own about 35% of the company, including Dutch investment firm Prosus and the Chan Zuckerberg Initiative, called for a special shareholders meeting to replace the chief executive and reconstitute the board..
According to Kotak Investment Banking, about 15 to 20 Indian internet companies with a valuation over $1 billion, including electric-scooter maker Ola Electric and e-commerce company FirstCry, will go public in the next two years..
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