India’s edtech giant Byju’s is reportedly on track to secure between $500 million and $700 million in its latest funding round, which is expected to be led by several top private equity firms and sovereign wealth funds. According to a media report, the funding round is set to take place this month and could push the company’s valuation to $22 billion. The funding will reportedly be used to pay off some of Byju’s existing debt and consolidate and grow the company.
The upcoming funding round looks to be extremely promising, with many of the current investors taking part and some leading VC firms expected to join in. This could potentially push the funding round to its maximum value. Thorough due diligence has been conducted both by Byju’s and the investors, providing the edtech giant with a chance to make a strong comeback in light of growing public scrutiny and other miscellaneous problems related to some of their acquisitions, like WhiteHat Jr.
Byju’s recently secured a $1.2 billion term loan in November 2021 and has now secured additional funds in order to repay it. The company is striving towards profitability and, as part of this push, they have appointed Ajay Goel as the new CFO to strengthen their financial processes.
Byju’s is restructuring and cutting costs by closing its coding platform, WhiteHat Jr., which it acquired for $300 million. It said it was simply “maximising” the service.
Despite not meeting the March 2023 target for group-level profitability in the October 2021 earnings report, Byju’s remains a major player in the Indian edtech market and is aiming to thrive with its recent funding round.