The world’s most valued edutech startup Byju’s is preparing to raise $ 250 million (Rs 2047.71 crore). Bloomberg has informed sources that Byju’s will issue convertible notes through its offline coaching unit Aakash. It will raise funds Byju’s tutoring business provider Aakash Educational Services will issue notes
The world’s most valued edutech startup Byju’s is preparing to raise $ 250 million (Rs 2047.71 crore). Bloomberg quoted sources as saying that Byju’s will raise the funds by issuing convertible notes through its online coaching arm Aakash. Byju’s’ tutoring business provider Aakash Educational Services will issue the notes. Aakash is preparing to bring IPO and the notes that will be issued now can be converted into shares at a discount of 20 per cent to the listing price. Aakash plans to bring IPO ( Aakash IPO ) in the first half of 2023 this year.
This will be the advantage of Aakash’s pre-IPO round
Aakash plans to come out with an IPO and the pre-IPO funding round will help it tide over its liquidity crunch. In the last months of last year, Byju’s had started talks with bankers to launch Aakash’s IPO. However, these plans to raise funds are getting delayed due to the lengthy due diligence process.
Byju’s is trying to return to profit this year
Akash, a thirty-year-old Edutech company that provides engineering-medical coaching, was bought by Byju’s in 2021 for $ 950 million. Private equity firm TPG and two sovereign wealth funds in the Middle East were in talks to raise funds for Aakash, but the process got stuck during due diligence.
On the other hand, Byju’s is also in separate talks with creditors to renegotiate the $1200 million debt settlement. After the Corona epidemic, the speed of online coaching stopped, then the losses of Byju’s increased further. In such a situation, now its founder Byju Raveendran is working on a comeback plan for the group, on the basis of which it can return to profit this year.
