BYJU’S is planning to raise $700 million in new financing at a flat valuation of $22 billion.
The new funding round, which is nearing completion, could be completed in the ensuing one to two weeks, the sources said. In this round, which has already undergone due diligence, existing investors are also taking part, they noted.
According to the report, two West Asian sovereign wealth funds and sizable private equity companies led the edtech company’s most recent round of funding. At least $400 million to $500 million has been put aside for debt payments in accordance with one of the terms of the agreement, it continued.
BYJU’S opted not to remark on the situation. This development occurs a day after BYJU’S named Ajay Goel its chief financial officer due to a hold-up in submitting the FY22 financials to the Registrar of Companies. After an 18-month delay, the edtech company’s FY21 financials were submitted to Indian regular accounting authorities.
It was recently revealed that BYJU’S intended to raise up to $250 million through the sale of convertible notes by Aakash Educational Services Ltd, which it had purchased in April 2021 for a transaction worth nearly $950 million in cash and stock.
Following the acquisition of $800 million from Blackrock, Sumeru Ventures, and other investors in March, BYJU’S last received $250 million in a funding round from its current investors, including Qatar Investment Authority, in October 2022. In October of last year, it also accepted a 300 crore rupee unsecured debt from Aakash.
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BYJU’S last month offered to its lenders to renegotiate its debt financing agreements, as part of which it offered to increase the interest rate on its $1.2-billion term loan B (TLB). At the time of the raise, this was the largest TLB made by an Indian startup, but the loan was unrated. The edtech company has recently come under fire for its financial practices and significant downsizing.
