BYJU's raise $500-$700 mn led by top VC firms
The leading private equity companies and sovereign wealth funds are slated to lead the next funding round for edtech giant BYJU's, which is expected to raise between $500 and $700 million at a flat valuation of $22 billion. This funding round is expected to be completed this month at any moment.
The investment round would not only help BYJU's consolidate and expand its business but also pay off part of its existing debt, which has been anticipated for a while during the financial winter that is becoming worse.
Top VC firms are leading the round, and several current BYJU investors are eager to participate as well, which could bring the investment round to its maximum. They added that this will help the edtech unicorn "come back with a bang" amid increased scrutiny and other issues it is presently dealing with with some of its acquisitions, like WhiteHat Jr., saying that "to meet the regulatory framework, a solid due diligence has been done by the BYJU's and the investors in taking the round to its concluding stage."
When contacted, BYJU's declined to comment on the situation right away. The Financial Express broke the news of the development first. The company's goal with the most recent capital round is to pay back a sizable $1.2-billion term loan B that it obtained in November 2021.
In order to improve its financial operations and achieve profitability, the company has now named Ajay Goel as its chief financial officer (CFO). BYJU's is dismantling coding platform WhiteHat Jr., which it purchased for $300 million, as part of restructuring and cost-cutting measures in order to become profitable. The business claimed that it was "merely optimising" it. The edtech company BYJU's did not reach group-level profitability by March.
The investment round would not only help BYJU's consolidate and expand its business but also pay off part of its existing debt, which has been anticipated for a while during the financial winter that is becoming worse.
Top VC firms are leading the round, and several current BYJU investors are eager to participate as well, which could bring the investment round to its maximum. They added that this will help the edtech unicorn "come back with a bang" amid increased scrutiny and other issues it is presently dealing with with some of its acquisitions, like WhiteHat Jr., saying that "to meet the regulatory framework, a solid due diligence has been done by the BYJU's and the investors in taking the round to its concluding stage."
When contacted, BYJU's declined to comment on the situation right away. The Financial Express broke the news of the development first. The company's goal with the most recent capital round is to pay back a sizable $1.2-billion term loan B that it obtained in November 2021.
In order to improve its financial operations and achieve profitability, the company has now named Ajay Goel as its chief financial officer (CFO). BYJU's is dismantling coding platform WhiteHat Jr., which it purchased for $300 million, as part of restructuring and cost-cutting measures in order to become profitable. The business claimed that it was "merely optimising" it. The edtech company BYJU's did not reach group-level profitability by March.