Byju’s acquired Aakash for about $950 million in 2021. The three-decade-old educational institution prepares students for various competitive exams like JEE and so on.
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New Delhi: The world’s most valuable edtech startup, Byju’s, is trying to raise nearly $250 million through the issuance of convertible bonds through its tutoring unit Aakash Educational Services, Bloomberg reported, citing people familiar with the matter.
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Aakash Educational Services will issue the debentures, which will be converted into shares at a discount of 20 percent to the list price of the entity’s proposed initial public offering (IPO), the report added. It also said some Byju’s investors are expected to participate in the round.
The pre-IPO round at Aakash Byju’s e is expected to help weather a liquidity crisis as parent-level fundraising talks are delayed due to a lengthy due diligence process. The Bengaluru-based company had entered talks with bankers late last year to select arrangers for Aakash’s IPO, Bloomberg News reported.
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Byju’s acquired Aakash for about $950 million in 2021. The three-decade-old educational institution prepares students for various competitive exams like JEE and so on.
The Bloomberg report also mentioned that fundraising talks in Aakash began after talks with private equity firm TPG and two Middle East sovereign wealth funds over a parent-level capital raise stalled during due diligence.
Byju’s, which is still struggling with mounting losses after its pandemic-era boom, is in separate talks with creditors to renegotiate an agreement on a $1.2 billion loan, according to the report breaches the agreements. Byju Raveendran, the founder of Byju’s, is currently working on a turnaround plan for the group and promises to make it profitable this year.
Release Date: March 9, 2023 1:20 PM IST
Date updated: March 9, 2023 1:20 PM IST
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