Byjus Raises$250 Mn Debt From Davidson Kempner Cap

The fresh capital was raised at the company’s current valuation of $22 billion, two people with knowledge of the development said, requesting anonymity.

“The company is expecting to close the $1 billion round by the end of the month," one of the people said. According to the second person cited above, Byju’s is in talks with Middle East-based sovereign wealth funds and family offices to raise the remaining amount.

“It is going to be a mix of equity and structured debt," the second person said, referring to the $1 billion fundraising plan.

A spokesperson for Byju’s declined to comment.

The Bengaluru-based firm has been under pressure after an accounting change it brought about in reporting its FY21 financials that caused a massive drop in revenue realizations and squeezed profits. Byju’s has still to file its FY22 results. Founded in 2011, the company’s losses widened to ₹4,589 crore in FY22 from ₹232 crore in FY21.

Byju’s has also seen some of its early investors looking to exit, as reported by Mint earlier. A few have farmed out ‘soft’ mandates to investment banks to seek buyers, the report said. The company has also faced heat from bondholders for the senior debt it raised in 2021.