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.