Edtech Dakorn Byju’s has raised a $250 million funding round from US-based investment manager Davidson Kempner Capital Management. Two people with knowledge of the development said the round is part of an ongoing $1 billion funding round, which has attracted participation from both existing and new investors and will be raised at a current valuation of $22 billion.
Edtech decacorn Byju’s has raised $250 million in debt funding from US-based investment manager Davidson Kempner Capital Management. Two people aware of the development said the round is part of an ongoing $1 billion funding round from both existing and new investors, which is a mix of debt and equity and will be raised at a current valuation of $22 billion .
“The company expects to close the $1 billion round by the end of this month,” said a person with direct knowledge of the matter. Family offices to raise the balance.
“It’s going to be a mix of equity and structured debt,” said the second person.
A Byju’s spokesperson declined to comment.
The Bangalore-based company has been under pressure following the accounting changes brought in its financial reporting for FY21, which led to a sharp decline in revenue receipts and squeezed its profits. It is yet to file its FY22 results.
Byju’s, founded in 2011, saw its losses widen 4,589 crores to 232 crores in the last financial year.
As Mint reported earlier, the company has seen some of its early investors looking to cash out. The report said some have given a ‘soft’ mandate to investment banks to look for buyers.
The company has also faced trouble from its bond holders for the senior debt it raised in 2021. Amid delays in its financial filing, bond holders are renegotiating the terms of the loan with the company, which has put further pressure on the Byju Raveendran-led company to manage the cost of capital well.
Davidson Kempner Capital Management LP is a global institutional alternative investment management firm with more than $36 billion in assets under management. In December 2021, the New York-based investor launched its local arm, Davidson Kempner Investment Advisors India Pvt. Ltd. has rented an office space at Bandra Kurla Complex in suburban Mumbai. It has inducted Ambareesh Singh, former head of investments at Nomura, as part of its Mumbai leadership team to expand its business in India.
According to a report in VCirle, Davidson Kempner invests in real assets and public and private markets across the capital structure, along with specialized positions among its global funds in credit and equity strategies. It is exploring equity and debt transaction opportunities in India.
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