The founder of Byju's proposes a share offering as a means to reconcile with investors with whom relations have soured.

Byju Raveendran, the founder of Byju's, a struggling educational technology company, has made a final effort to appease dissatisfied investors. He informed them that the board is considering offering relinquished shares to prevent the dilution of their stakes before validating a recent rights issue, which drastically reduces the valuation of the Indian startup by 99%.

In an email sent to shareholders on Friday, as seen by TechCrunch, Raveendran mentioned that despite some investors displaying hostility and pursuing unwarranted legal actions, the startup's board is contemplating the share offer. He also revealed that the startup has already secured over 50% of the votes necessary to increase the authorized share capital to implement the fully subscribed $200 million rights issue. Byju's will hold an extraordinary general meeting on Friday to pass the resolution regarding the rights issue. The rights issue values Byju's at less than $250 million, a significant decrease from the $22 billion valuation in early 2022.

Investors such as Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative did not participate in Byju's recent $200 million rights issue. Instead, they have sought legal means to oust Raveendran and his family from the startup and invalidate the rights issue.

"I have always built Byju's with a spirit of fairness and inclusivity, with no intention to leave any investor behind, regardless of their shareholding size," Raveendran wrote in Friday's email. "Since the inception of this company, my vision has been to progress together from one milestone to another, believing that we can overcome challenges collectively."

Prosus, Peak XV, and the Chan Zuckerberg Initiative have raised concerns about the governance practices at the startup, which has also faced repeated delays in producing its financial accounts in recent years. These investors resigned from the startup's board, and Deloitte, the global auditing giant, ceased its services for Byju's last year due to these concerns.

"Even my critics acknowledge that I have invested everything, and more, into this company," Raveendran added. "So, I hope you will recognize the value in continuing with Byju's, maintaining the same spirit with which you initially joined our journey."