Indian edtech startup BYJU’S is in advanced talks with prospective new shareholders for a $1 billion fundraising round in an attempt to sidestep a revolt by some investors, Bloomberg News reported on Tuesday, citing sources.

The education startup is offering benefits to the potential investors, including preferential treatment in the case of liquidation, the report said, adding that none of its existing shareholders have a so-called liquidation preference.

BYJU’S seeks to close a round within two weeks, according to the report. The company did not immediately respond to a Reuters’ request for a comment.

The report comes days after representatives of three global investors – Peak XV, Prosus NV and the Chan-Zuckerberg Initiative – stepped down from the company without publicly citing reasons, and auditor Deloitte said it was severing ties with the startup over its “long-delayed” financial statements for the year ended March 2022.

Reuters