Edtech company BYJU’S is in talks with investors such as Texas Pacific Group Capital (TPG) to raise more than $500 million, according to a report by Bloomberg. The report revealed that the capital infusion is much-needed as it could help them stave off potential debt issues. Bloomberg also reported that the Byju Raveendran-led firm, which is valued at about $22 billion, is trying to keep its valuation steady. Additionally, TPG and two Middle Eastern sovereign wealth funds have begun due diligence on the company amid the funding talks. People familiar with the matter have said that the negotiations are ongoing and it is unclear if the prospective investors will go ahead with the deal. The report also stated that the company is in separate talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants. 2022 was been a difficult year for the edtech company. From delayed results to the recent allegations imposed by the National Commission for Protection of Child Rights, the most valued start-up in India found itself in the middle of several controversies last year. In addition, BYJU’S parent, Think & Learn Pvt. Ltd, saw its consolidated losses widen by nearly 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Revenues from operations grew marginally to Rs 2,280.26 crore in FY21 from Rs 2,189 crore in FY20. The firm attributed the subdued growth to a change in the way it recognises revenue, as advised by its audit firm Deloitte Haskins & Sells.
In an interview with Business Today, Raveendran had said, “The last six months were challenging but the next six years are going to be great.” He also revealed that the company has made a “shift from just growth to sustainable growth.”