BYJU’S, the Indian edtech company, has secured $250 million from US investment firm Davidson Kempner Capital Management as part of a $1 billion fundraising round. The investment provides relief for the Bengaluru-based firm following a challenging period of financial difficulty and regulatory obstacles. In this article, we will explore the recent developments at BYJU’S, including the new funding round, the public listing of its subsidiary Aakash Educational Services, and the regulatory inquiries.
BYJU’S is a leading Indian edtech company founded by Byju Raveendran in 2011. The company offers a range of educational products and services, including interactive video lessons, practice quizzes, and personalized learning programs. It has over 100 million registered users and is valued at $22 billion, making it one of the most valuable edtech companies in the world.
The Latest Funding Round
According to sources, BYJU’s most recent funding round is carefully structured and is related to the public listing of its subsidiary Aakash Educational Services. The firm has managed to maintain its $22 billion value, but the fundraising round provides much-needed relief following a challenging period of financial difficulty and regulatory obstacles.
The $250 million investment from Davidson Kempner Capital Management is part of a $1 billion fundraising round that the company is in advanced talks with foreign investors, particularly West Asian sovereign wealth funds, to finalize the investment round. The money injection gives BYJU’S more financial flexibility to repay the $1.2 billion it borrowed from a consortium of creditors in November 2021 and expand its operations.
Public Listing of Aakash Educational Services
The public listing of Aakash Educational Services is a significant development for BYJU’S. Aakash is a leading test preparation company in India, offering coaching for medical and engineering entrance exams. BYJU’S acquired Aakash for $1 billion in April 2021, and the subsidiary has been a significant contributor to BYJU’S revenue.
The public listing of Aakash is expected to raise around $1.5 billion and will help BYJU’S to unlock value from its subsidiary. The listing is scheduled to take place in the first half of 2023, subject to regulatory approvals.
BYJU’S recent fundraising round provides the company with much-needed financial flexibility to repay its creditors and expand its operations. The public listing of Aakash Educational Services is a significant development for the company, and it is expected to raise around $1.5 billion. The regulatory inquiries are a reminder of the challenges that edtech companies face as they expand their operations and navigate complex regulatory environments.