Byju's, is attempting to raise more than $500 million through agreements with investors, including TPG. This much-needed money infusion could aid Byju's in avoiding future debt problems. The Indian company hopes to maintain its valuation at around $22 billion throughout the financing, according to sources with knowledge of the situation.

A number of investment firms, including TPG and two Middle Eastern sovereign wealth funds, have started their due diligence on the company. This is true despite a worldwide tech downturn that has resulted in thousands of layoffs, decreased global investment activity, and reduced the valuations of formerly high-flying digital startups by billions.

The persons, who asked not to be identified because the information is confidential, said that negotiations are underway and it is uncertain whether the potential investors will move forward with a deal. Byju's is in separate discussions with creditors to rework an arrangement controlling a $1.2 billion loan that is in violation of covenants after the surge in online tutoring during the epidemic petered out and the company struggled with rising losses.

The Bangalore-based business, which was established in 2015 and was formerly known as Think & Learn Pvt., postponed its ambitions to list on the stock market last year due to the downturn in the world markets. Days after announcing a 5% employee reduction, it collected money for the last time in October at a $22 billion value.

In the face of a global IT slowdown, Byju's raised billions of dollars in financing with the support of the Chan Zuckerberg Initiative, General Atlantic, and Tiger Global to finance a global acquisition binge. The company, which once had 150 million members, has since faced a number of difficulties, such as a protracted delay in the submission of audited financial statements and a cutback in last year's funding.

The business submitted its audited financial results for the year ending March 2021 in 2022, which showed significant losses. Also, it promised to decrease its marketing and sales expenses and lay off 2,500 employees, or around 5% of its overall employment, in order to turn a profit by March.