Edtech giant BYJU’S, which is valued at $22 billion, is reportedly in talks with several investors, such as Texas Pacific Group Capital (TPG), to raise more than $500 million, according to a report by Bloomberg.
The report said that the capital infusion is much-needed as it could help them stave off potential debt issues.
Bloomberg also reported that the Byju Raveendran-led firm, which is valued at about $22 billion, is trying to keep its valuation steady. Additionally, TPG and two Middle Eastern sovereign wealth funds have begun due diligence on the company amid the funding talks.
The report added that the negotiations are ongoing, and it is unclear if the prospective investors will go ahead with the deal. The report also stated that the company is in separate talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants.
Byjus, which delayed in filing its audited results, readjusted its revenue from operations to Rs 2,280 crore even as it incurred massive losses of Rs 4,588 crore, up from just Rs 262 crore in the previous fiscal. This was a significant drop of 48% from the projected revenue.
Follow IndianStartupNews on Facebook, Instagram, Twitter for the latest updates from the startup ecosystem.