New Delhi (India), 13th May 2023: Byju’s, an education technology decacorn, has raised $250 million in capital from Davidson Kempner Capital Management, a US-based investment firm.
According to two sources familiar with the situation, this transaction is part of an ongoing $1 billion funding round that has garnered interest from both existing and new investors and will be financed at the current valuation of $22 billion.
Davidson Kempner Capital Management, a US-based investment company, has provided $250 million in debt finance to EdTech giant Byju’s.
According to two sources familiar with the situation, this transaction is part of an ongoing $1 billion funding round, a mix of debt and equity, from both existing and new investors, and will be raised at the current valuation of $22 billion.
A person with direct knowledge of the matter said, “The company is expecting to close the $1 billion round by end of the month.”
According to the second source, the corporation is in talks with Middle Eastern sovereign wealth funds and family offices to raise the remaining money.
The Bangalore-based firm has been under pressure since the accounting reform it implemented in reporting its financials for FY 21, which resulted in a huge decline in revenue realisations and reduced earnings. It has yet to file its fiscal year 22 results.
Losses for the firm have increased to 4,589 crore from 232 crore in the preceding fiscal. Due to this some of the company’s early investors are looking to cash out.
The corporation has also received criticism from bondholders over the senior debt it issued in 2021. Due to the delay in publishing its financials, bond holders have been renegotiating the conditions of the company’s loan, putting more pressure on Byju Raveendran’s company to manage its cost of capital well.
