Byju’s Aims to Repay $1.2 Billion Loan in Under 6 Months: Report
- ByStartupStory | September 11, 2023
Edtech giant Byju’s has put forth a proposal to repay its entire $1.2 billion term loan within a span of just six months, as per sources cited in a Bloomberg News report. The proposed plan entails paying off $300 million in the upcoming three months, with the remaining balance to be settled over the following three months. Lenders are currently evaluating the proposal and seeking further insights into Byju’s funding strategy for this repayment.
While Byju’s has yet to officially comment on this report, the exact total debt of the company remains undisclosed. The prolonged delay in Byju’s financial disclosures and concerns regarding its corporate governance have prompted significant investors, including the Chan-Zuckerberg Initiative, Sequoia Capital India, and Naspers Ventures, to step down from its board. Additionally, auditing firm Deloitte has severed its ties with the company.
This ongoing financial turmoil has led Byju’s to undertake a series of cost-cutting measures, including significant layoffs in 2023, citing financial constraints. The edtech firm is navigating a challenging period marked by legal and financial issues, and its proposed repayment plan signals its commitment to addressing these challenges head-on.