BYJU's in final talks to raise $250 million for a flat valuation: Report
A company usually raises money at a flat valuation when it cannot get a higher valuation from investors, or when its financial performance has not improved significantly over its previous funding round. Last month, BYJU's was in talks to raise $500 million for a flat valuation of $22 billion from TPG and other investors.
Edtech startup BYJU's is reportedly in final talks for a $250 million fundraise for a flat valuation of $22 billion, DealStreetAsia reported citing a source. The move comes amid pressure on the firm to put a lid on the increasing costs as well as to turn profitable and pay back a $1.2-billion term loan.
Last month, the website had reported that BYJU's was in talks to raise $500 million for a flat valuation of $22 billion from TPG and other investors. It is not yet clear if the funding round had closed or if the recent round was part of the same fundraising.
Last March, BYJU’s had raised $800 million in a funding round led by Sumeru Ventures, Vitruvian Partners, and BlackRock. The edtech decacorn's Founder and CEO Byju Raveendran also participated in the fundraise and made a personal investment of $400 million.
Firms usually raise money at a flat valuation when they cannot get higher valuation from investors, or when the firm's financial performance has not significantly improved from its previous funding round. In a few cases, the firm may even choose to raise money for a flat valuation to avoid diluting the existing shareholders.
On another note, in January it was reported that the edtech startup had sought more time from creditors to renegotiate an agreement governing a $1.2-billion loan that is in breach of covenants, according to sources.
BYJU's is backed by marquee investors like the Canada Pension Plan Investment Board (CPPIB), Chan-Zuckerberg Initiative Naspers, General Atlantic, Sequoia Capital, Tencent, Tiger Global, among others.
It has been under the scanner for its mass layoffs, accounting practices and widening losses in the last few months.
(Edited by : Shoma Bhattacharjee)
First Published: Mar 22, 2023 5:40 PM IST
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