BYJUS is raising $700 mn at a valuation of $22 bn
Edtech decacorn BYJUS is raising $700 million in a new funding round that includes two separate deals of equity and convertible notes.
“The company is in the process of finalizing the transaction.” “The due diligence process is finished,” a source told BT, adding, “They are just waiting for the money to be credited into their bank account.” They want to finalize the transaction before making the announcement.”
Another media report claims that the new funding round will be led by two West Asian sovereign wealth funds and large private equity firms. The round will also include a few existing investors.
According to the report, a few senior employees were briefed on the round after the term sheet was signed.
Media contacted the company for an official response, but BYJUS declined to comment.
There have been numerous reports of BYJU’s struggle to raise funds while also attempting to “maintain its valuation steady.” According to a Bloomberg report from February, BYJU’S is in talks with investors such as Texas Pacific Group Capital (TPG) to raise more than $500 million. The capital infusion is also “much needed,” according to the report, as it could help them “avoid potential debt issues.”
According to Bloomberg, the company is also in separate talks with creditors to renegotiate an agreement governing a $1.2 billion loan that has breached covenants.
However, in an interview with BT, Divya Gokulnath, co-founder of the edtech major, clarified that the company is focused on scaling its offline model — the tuition centers — and that this requires investment. She also stated that the company is focusing on its K-12 models.
She also confirmed the Aakash IPO and stated that it will take place in India.