Byju's founder Raveendran keen to raise funds

Edtech major Byju's founders Byju Raveendran and Divya Gokulnath are planning to increase their stake in the company to about 40 per cent and have initiated discussion with investors, sources aware of the development said on Wednesday.

The founders jointly hold around 25 per cent stake in the company at present.

"There is an intention of Byju's founders to double their stake in the company.

"The discussions are at exploratory level with investors to raise debt," the source told PTI on condition of anonymity.

Byju's founders raised their stake from 23 to 25 per cent in May 2022 in a $800 million funding round led by Byju Raveendran.

The edtech major has claimed that it will turn profitable by March.

Byju's reported a loss of Rs 4,588 crore in 2020-2021 compared to Rs 232 crore in 2019-20.

Revenues also recorded a drop in FY21 to Rs 2,428 crore from Rs 2,511 crore in FY20.

The company is also planning to focus more on inside sales calls, email, and video calling to reduce operational costs.

Chan Zuckerberg Initiative (CZI), founded by Mark Zuckerberg and Priscilla Chan, Prosus Ventures, Sequoia Capital India, Bond, Silver Lake, Owl Ventures, UBS, Blackrock and Sands Capital Management, among others, have invested in the edtech firm.

The company had raised $250 million in its last funding round from existing investors, including Qatar Investment Authority (QIA), at an enterprise valuation of $22 billion.