Chegg is a textbook rental service that has filed for a $150 million initial public offering (IPO). Chegg also announced that a co-founder of the company will be stepping down from the board of directors. Chegg will use part of the additional funds to repay $21 million of outstanding borrowings under the company’s revolving credit facility and to fund general corporate operations. The additional funds will also be used to facilitate future access to the public equity markets.
Chegg co-founder Aayush Phumbhra has stepped down from the company’s board of directors. According to the WSJ, Chegg has added four new board members to the company, which includes Shutterfly CEO and President Jeffrey Housenbold, Facebook exec Marne Levine, San Francisco 49ers Chief Executive Jed York, and Kohlberg Kravis Roberts KKR Richard Sarnoff. Chegg now has 7 board members.
The textbook rental company started in 2005 and launched the first online print textbook rental service in 2007. Chegg rents out the books at a substantial price from the list price of the book. Chegg has 180,000 unique titles in their print textbook library available for rent and offers 100,000 textbook e-books. Students completed 3.7 million transactions through the website in 2012. Chegg rented or sold over 4 million print textbooks and e-book textbooks as a result.
Chegg’s revenue increased 26% to $116.9 million for the 6 months ended June 2013. The company narrowed their losses of $21.2 million from $31.9 million in the prior year period. Chegg will be trading on the New York Stock Exchange under the symbol CHGG.