A source close to the matter told Business Today that the due diligence process is complete and the company is waiting for the money to get credited into their bank account
Edtech decacorn BYJU’S is raising $700 million in a fresh funding round which involves two separate deals of equity and convertible notes, sources have told Business Today.
“The company is in the middle of closing the deal. The due diligence process is complete,” a source told BT and also revealed, “They are waiting for the money to get credited into their bank account. They want to close the deal completely before making the announcement.”
According to another media report, the fresh funding round will be led by two West Asia-based sovereign wealth funds and large private equity firms. A few existing investors will also participate in the round.
The report also suggested that a few senior employees have been briefed about the round after the term sheet was signed.
Business Today reached out to the company for an official response but BYJU’S refused to comment on the same.
There have been multiple reports of BYJU’S struggling to raise money while also trying to “keep its valuation steady.” In February, a report by Bloomberg revealed that BYJU’S is in talks with investors such as Texas Pacific Group Capital (TPG) to raise more than $500 million. The report also noted that the capital infusion is “much needed” as it could help them “stave off potential debt issues.”
Bloomberg 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.
In an interview with BT, the edtech major’s co-founder Divya Gokulnath, however, had clarified that the company is focused on scaling its offline model — the tuition centres — and for that they need investment. Additionally, the company is focusing on its K-12 models as well, she told BT.
She also confirmed the Aakash IPO and said that the listing will happen in India.