The most valuable private company in India, Byju's, has obtained $250 million in debt financing from the American investment group Davidson Kempner. The education technology business is attempting to raise $1 billion in total, and this funding is a portion of that effort.

An estimated $38 billion in assets are now being managed by Kempner. The cash comes as Byju's considers making its tutoring network, Aakash Educational Services, publicly traded. Two years ago, it paid $1 billion to purchase Aakash. Prior to going to the press, Byju's did not respond to an email regarding funding.

The money will help Byju's reduce its debt and provide some respite from the recent barrage of bad press the business has endured due to the company's failure to file its annual financial reports on time and the Enforcement Directorate's (ED) investigation into possible violations of the Foreign Exchange Management Act (FEMA). Some of Byju's lenders have made a $200 million prepayment at a higher interest rate necessary in order to renegotiate a $1.2 billion loan that Byju's is attempting to obtain.

The remaining $1 billion of the $1 billion fund raise will likely be raised through equity at the same value ($22 billion) as Byju's previous fund raising. Even that will be believable given that values for most companies are now declining.