After raising $2 billion since 2020, Byju’s is now looking to raise another $500 million in debt to acquire more businesses

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After raising $2 billion since 2020, Byju’s is now looking to raise another $500 million in debt to acquire more businesses
BCCL
  • The company is looking to raise this debt through the Term Loan B (TLB) route, where several institutional investors may participate.
  • The company has reportedly appointed JP Morgan and Morgan Stanley as investment banks to structure the deal.
  • Byju’s may be looking to refill its treasury, after spending billions of dollars on acquisition in the last 18 months.
The world’s highest valued edtech firm Byju’s is reportedly planning to raise $500 million or ₹3,700 crore in debt to acquire more businesses.

The Bengaluru-based startup is looking to raise this debt through the Term Loan B (TLB) route, which is a term loan made by institutional investors whose primary goals are maximising the long-term total returns on their investments.

Several institutional investors as well as hedge funds will reportedly be looking to invest in this opportunity.

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The company has also appointed JP Morgan and Morgan Stanley as investment banks to structure the deal, according to a Mint report citing sources.

When Business Insider reached out for confirmation of the media report, Byju’s denied to comment on the report.

Initial public offering (IPO)-bound OYO had raised $660 million through the Term Loan B (TLB) route in July this year.

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Acquiring businesses is an expensive business

The Mint report further highlighted that Byju’s is looking to refill its treasury after spending billions of dollars on acquisition in the last 18 months.

The company had raised over $2 billion in the last two years, however the company has mostly spent that amount in acquiring new businesses across the globe. This includes rival Toppr, Singapore-based upskilling platform Great Learning, US-based coding platform Epic and more.

The company had raised $1.3 billion in 2021 and $1 billion in 2020.
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Amount raised by Byju’sMonth/Year
$200 millionJanuary 2022
$100 millionJune 2020
$122 millionAugust 2020
$500 millionSeptember 2020
$460 millionMarch 2021
$350 millionJune 2021
$50 millionJune 2021
$150 millionAugust 2021
$296 millionSeptember 2021

Byju’s also spent a billion dollars to acquire coaching center chain Aakash Institute — which has over 250 centers across India and is a profitable venture. This is the biggest acquisition carried out by an Indian edtech company.

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