Byju’s receives $700 million in a new round of fundraising. The financing, which involves two distinct stock and convertible note transactions, might be revealed within the next two weeks.
Byju’s, the world’s most valued edtech company, has raised $700 million at a $22 billion valuation through two separate stock and convertible note offers. The much-needed financial infusion might help the edtech behemoth avoid future debt problems.
According to the reports, the new fundraising round was sponsored by two West Asian sovereign wealth funds and significant private equity companies. Nonetheless, a few existing investors took part in the round as well.
The business had raised $250 million at the same value in October. The most recent round of funding was $250 million from current investors and the Qatar Investment Authority.
In an $800 million investment round disclosed in March 2022, the firm was valued at $22 billion. By the end of this month, Byju’s hopes to become profitable.
Under the strategy, the corporation let off 2,500 employees and hired 10,000 teachers for India and other countries. Byju’s reported a loss of 4,588 crore for the fiscal year ending March 2021, which was 19 times greater than the previous fiscal year.
The losses in the 2020-21 fiscal year increased from 231.69 crore in the previous year. Revenues in fiscal year (FY) 2021 fell to 2,428 crore from 2,511 crore in FY20.
Nevertheless, in the fiscal year ended March 2022, the business reported sales more than quadrupled to 10,000 crore, although it did not provide profit or loss figures.
Meanwhile, Byju’s is in separate negotiations with creditors to rework a loan arrangement regulating a $1.2 billion loan that is in breach of covenants.
Byju Raveendran, the group’s founder and a former educator, is currently working on a recovery plan for the organisation, aiming to make it profitable this year.
