Byju’s in talks to raise $500 million via Term Loan B
- ByAyushi Ray | August 25, 2021
India’s edtech startup Byju’s in talks to raise $500 million via Term Loan B, from global investors, as it is also gearing up for an IPO. The deal is at an early stage and the company has started working with Morgan Stanley for the same. TLB refers to a tranche of senior secured syndicated credit facilities from global institutional investors. OYO was the first company to have raised this debt in India. Moneycontrol reported about it on July 16. Conventionally, TLB proceeds are used either to refinance the existing debts by a company or to make overseas acquisitions with an aim to enhance their offerings. In the case of OYO, $660 million was raised to retire their existing debts and pump up its operations and product technology as it explores the market for a potential IPO. “A TLB makes the balance sheet look healthier and is also seen as a prep for accessing the public market,” said an anonymous industry export.
Byju’s, which has spent over $2 billion in acquisitions in the last six months, also has plans for a couple of more acquisitions to drive international expansion. It last announced the acquisition of upskilling platform Great Learning for $600 million. Earlier this year, the company acquired US-based reading platform Epic, educational games maker Osmo, coding startup WhiteHat Jr and offline test preparation firm Aakash Educational Services Limited. Aakash alone was bought for a whopping $1 billion. Valued at $16.5 billion, the company last announced a fundraise of $350 million from UBS, Blackstone, ADQ, Phoenix Rising & Zoom founder Eric Yuan in June.
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