BYJUS in Process to Raise Rs 600-700 Crore to Fund Operations

Edtech major BYJU'S is in the process of raising Rs 600-700 crore to fund the company's operations till March. The company expects to realize money through the sale of Epic and a partial stake sale in other subsidiaries by then, according to sources aware of the development.

Representative image

BYJU'S Founder Byju Raveendran Raises Money by Mortgaging Assets

BYJU'S founder Byju Raveendran has recently raised money by mortgaging home and real estate assets owned by family members to pay salaries. Sources say there is a gap of about Rs 50 crore per month in operational expenses, a large component of which is salary. Promoters have pledged shares, homes, and some other real estate assets of family members to bridge the gap.

Promoters to Raise Debt, Seek Shareholder Approval

Promoters are also in the process of raising debt of Rs 600-700 crore to help operations till March. The situation is expected to ease by March with the sale of Epic and a partial stake sale in some other subsidiaries. BYJU'S has called an Annual General Meeting (AGM) on December 20 where the assets that have been pledged by the promoters will be brought to the notice of the company's board.

The company is also in the process of submitting a repayment schedule to the Board of Control for Cricket in India (BCCI) for Rs 160 crore in sponsorship dues. Besides the sale of Epic, which is in advanced stages, existing investors are also expected to infuse funds into the company.

Manipal Education and Medical Group Chairman Acquires BYJU'S Debt

Last month, Manipal Education and Medical Group Chairman Ranjan Pai acquired a Rs 1,400 crore debt raised by BYJU'S from Davidson Kempner. The settlement includes a penal amount claimed by Kempner against a debt investment of USD 100 million, or about Rs 800 crore. Pai is also in discussions to buy additional stakes in AESL shortly. Ranjan Pai's proprietary fund, Aarin Capital, was the first institutional investor in BYJU'S in 2013.

BYJU'S is taking steps to raise funds and restructure its debt obligations. The company is looking to sell Epic and partially divest some subsidiaries to generate revenue. Promoters have also provided personal assets as collateral to secure loans. The company's AGM on December 20 will provide further details on these developments.