BYJUS to raise $500 mn from TPG
According to Bloomberg, edtech company BYJUS is in talks with investors such as Texas Pacific Group Capital (TPG) to raise more than $500 million. According to the report, the capital infusion is much-needed because it could help them avoid potential debt problems.
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Bloomberg also reported that the Byjus Raveendran-led firm, which is valued at approximately $22 billion, is attempting to maintain its valuation. TPG and two Middle Eastern sovereign wealth funds have also begun due diligence on the company in the midst of the funding talks.
According to people familiar with the situation, the negotiations are still ongoing, and it is unclear whether the prospective investors will proceed with the deal. The company is also in separate talks with creditors to renegotiate an agreement governing a $1.2 billion loan that is in breach of covenants, according to the report.
BYJUS
The edtech company had a difficult year in 2022. From delayed results to recent allegations imposed by the National Commission for Protection of Child Rights, India’s most valuable start-up was embroiled in several controversies last year.
Furthermore, BYJU’s parent company, Think & Learn Pvt. Ltd, saw its consolidated losses nearly double to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Revenues from operations increased marginally in FY21 to Rs 2,280.26 crore from Rs 2,189 crore in FY20. The company attributed the slowing growth to a change in revenue recognition recommended by its audit firm, Deloitte Haskins & Sells.
Raveendran told Business Today, “The last six months were challenging, but the next six years are going to be great.” He also stated that the company has “shifted from simply growth to sustainable growth.”
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