Indian edtech decacorn Byju’s raising $1.2b through term loan funding

Byju’s founder Byju Raveendran. Photo: Mint

India’s most valued startup Byju’s is raising $1.2 billion through a term loan B (TLB) funding as it plans to go for an initial public offering (IPO) in the next few months, Moneycontrol reported.

TLB refers to a tranche of senior secured syndicated credit facilities from global institutional investors. They typically have a floating interest rate, with tenures of 5-7 years.

Byju’s plans to use the aforesaid amount for general corporate purposes, the report said quoting the company’s latest filings.

Byju’s was in talks to raise $500 million through TLB for a while now. According to a report in Mint in October, the company was also planning to use the funds for acquisitions.

In 2021 alone, the edtech decacorn has spent over $2 billion in mergers and acquisitions. These include higher education platform Great Learning ($600 million), kids’ digital reading platform Epic ($500 million), test preparation provider Aakash Educational Services ($1 billion), and after-school learning app Toppr ($150 million).

With the current round, Byju’s has become the second company after hospitality major Oyo to raise funds via TLB. Oyo had announced raising a TLB funding of $660 million from global institutional investors this July.

Founded in 2015 by former teacher Byju Raveendran, BYJU’S offers engaging and effective learning programmes for students in LKG, UKG, classes 1 -12 (K-12) and competitive exams like JEE, NEET and IAS.

The company has raised over $3 billion in funding to date. It had last raised about $296 million (Rs 2,200 crore) in its Series F funding round led by Oxshott Venture Fund, reportedly at a valuation of $18 billion.

Other investors in the round included, Edelweiss Private Investments Trust, Verition Multi-Strategy Master Fund, IIFL Private Equity Fund, XN Exponent Holdings, and MarketX Ventures.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.