BYJU’S, the edtech decacorn, is in talks with Abu Dhabi-based fund 10X AD and US-based private equity firm Apollo Global Management to raise between $400-600 million. If the deal goes through, 10X AD could invest between $150-200 million in either BYJU’S parent company Think and Learn Private Ltd or subsidiary Aakash Education Services. On the other hand, BYJU’S has also reached out to Apollo Global for a $200-250 million structured funding for Aakash. The talks are still underway, and the deal may not materialize. One of the main concerns among investors seems to be the financial health of the company, as BYJU’S financial statements for FY22 and FY23 are yet to be approved or made public.
To allay these concerns, BYJU’S auditor KPMG has prepared a detailed diligence report for the prospective investors. The fundraise is likely part of CEO Byju Raveendran’s efforts to stave off a potential debt crisis, pare his 30% stake in Aakash, and provide liquidity to negotiate BYJU’S $1.2 billion Term B loan. Investors are reportedly looking for an exit due to the parent company’s delayed financials, lax corporate governance norms, mounting losses, and mass layoffs. The financial health of BYJU’S is a key concern among investors, and the fact that the company’s financial statements for FY22 and FY23 have not been approved or made public yet could affect its funding plans. Without audited financial statements, investors may have difficulty assessing the company’s financial performance and making informed decisions about investing in it. However, to allay these concerns, BYJU’S auditor KPMG has prepared a detailed diligence report for the prospective investors, which is being used as a reference for financial performance and other latest updates.