Byju’s Reportedly Seeking Rs 700 Crore Funding to Support Ongoing Operations

Edtech company Byju’s is reportedly in the process of raising Rs 600-700 crore to support its operations until March. The funds will be obtained through the sale of their subsidiary, Epic, and a partial stake sale in other subsidiaries. Byju’s founder, Byju Raveendran, has also mortgaged home and real estate assets owned by family members to raise money for paying salaries.

According to sources, there is a monthly gap of around Rs 50 crore in operational expenses, with a significant portion going towards salaries. To bridge this gap, the promoters have pledged shares, homes, and other real estate assets. In addition to this, Byju’s is seeking a debt of Rs 600-700 crore to support operations until March. The situation is expected to improve by then, with the sale of Epic and a partial stake sale in other subsidiaries.

The company has called for an Annual General Meeting (AGM) on December 20, where the pledged assets will be brought to the attention of the company’s board. Byju’s is also working on submitting a repayment schedule to the Board of Control for Cricket in India (BCCI) for Rs 160 crore sponsorship dues. Furthermore, existing investors are expected to infuse funds into the company, along with the sale of Epic.

The AGM notice sent to shareholders also includes seeking approval for standalone and consolidated financial results for FY22. Last month, Ranjan Pai, Chairman of Manipal Education and Medical Group, acquired a Rs 1,400 crore debt raised by Byju’s from Davidson Kempner. This settlement includes a penal amount claimed by Kempner against a debt investment of USD 100 million.

Ranjan Pai is currently in discussions to purchase additional stakes in AESL. His proprietary fund, Aarin Capital, was the first institutional investor in Byju’s back in 2013. It is important to note that this story has not been edited by NDTV staff and is published from a syndicated feed.