BYJU's plans to raise $250 million in Akash pre-IPO funding: Report
The fundraising will help the edtech major, which is struggling with the delay in its fundraising due to delayed due diligence process, wave over its liquidity crunch.
Bengaluru-based edtech unicornis planning to raise as much as $250 million through the issuance of convertible notes by its test prep service provider, Aakash Educational Services Ltd (AESL).
Aakash will issue the notes, which will be converted into equity at a discount of 20% to the listing price of the unit’s planned initial public offering (IPO), as per a report by Bloomberg.
YourStory has reached out to BYJU's for a comment on the development. This story will be updated to reflect the company's response.
The fundraising will help the edtech major—which is struggling with the delay in its fundraising due to delayed due diligence process—wave over a liquidity crunch.
Byju’s investors are expected to participate in the round, as per the report.
The edtech major started talks with bankers last year to pick arrangers for Akash’s IPO.
Byju's bought brick-and-mortar education player Aakash Educational Services (AES) in a cash-and-stick deal of about $950 million in 2021.
The startup laid off more than 1000 employees, the cuts have happened mainly in the marketing, design, logistics and tech teams in India, and product teams in the international business.
BYJU’S reported to have raised an unsecured loan of Rs 300 crore ($36.45 million) from Aakash "principal business activities" in October 2022. The Rs 300 crore loan from Aakash Educational Services Limited was in effect an advance against the marketing activities and campaigns that BYJU’S has been running for Aakash.
The startup was last valued at $22 billion, reported a loss of Rs 4,564.38 crore in FY21, bigger than its FY20 loss which stood at Rs 305.5 crore.
Disclaimer: This story has been updated to reflect a possible response for BYJU's.
Edited by Akanksha Sarma