BYJU’S in talks with 10X AD and Apollo Global to raise $400-600 million in funding
- ByStartupStory | April 21, 2023
BYJU’S, a highly valued educational technology company, is said to be in discussions with Abu Dhabi-based fund 10X AD and private equity firm Apollo Global Management based in the United States to secure a minimum of $400 million to $600 million in funding.
Assuming that if the agreement goes through, 10X AD may invest between $150 million to $200 million in either Think and Learn Private Ltd, the parent company of BYJU’S, or its subsidiary Aakash Education Services.
According to sources cited by The Economic Times, 10X AD is considering two options: leading a group of investors or proceeding on its own. Additionally, the Abu Dhabi-based fund has requested preferred rights, pick options, and a guaranteed internal rate of return (IRR) for “downside protection” as part of the transaction.
Although 10X AD typically invests between $30 million to $50 million on its own in late-stage technology-focused funding, it is also known for collaborating with other investors and institutions, such as ADQ, to increase the pool size. Some small investor groups from the region may also participate in the deal.
According to the report, Disrupt AD, the venture capital arm of ADQ, is considering increasing its earlier investment in the edtech company and may also participate in the fundraising round.
BYJU’S, in addition to its talks with 10X AD, has also approached Apollo Global for a $200 million to $250 million investment in its subsidiary, Aakash. The investment may come at a discounted rate compared to the next funding round, or it may be through a preferred instrument with a fixed pre-agreed IRR and downside protection. It is noteworthy that Apollo Global had previously rejected BYJU’S attempt to secure investment.
According to sources, the discussions between BYJU’S and Apollo Global are ongoing, and it is uncertain whether the deal will be finalized.
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