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Byju's likely to secure $1 billion in funding amid funding winter: Report
Byjus

Byju's likely to secure $1 billion in funding amid funding winter: Report

| @indiablooms | 10 May 2023, 12:05 am

Bengaluru: Ed-tech firm Byju's is preparing to secure a substantial funding round of $1 billion through a combination of equity and structured instruments, Moneycontrol reported.

This funding round will be conducted at Byju's current valuation of $22 billion, making it one of the most significant funding rounds in recent times, the report said.

The infusion of funds will provide a substantial boost amid regulatory scrutiny by the Enforcement Directorate.

The directorate of Enforcement (ED) conducted searches at three locations-two business and one residential- of Raveendran Byju and his company in Bengaluru over alleged violation of the provisions of Foreign Exchange Management Act (FEMA), the probe agency said on April 29.

However, Byju Raveendran, in a letter to his employees, stated that the company has brought more foreign direct investment (FDI) to India than any other startup and no FEMA rules were violated, Reuters reported

The upcoming fundraising efforts will serve as a form of validation for Byju's founder and CEO Byju Raveendran and is crucial after the recent ED searches.

The discussions on funding come at a challenging period for India's startup ecosystem, which is experiencing one of the worst funding winters in recent times.

Prominent investors in the country have reduced their investments by over 80 percent, said the report, adding that the investors have grown more cautious about edtech companies due to the decreased demand for online learning following the pandemic.

Moneycontrol reported citing sources familiar with the matter that out of the $1 billion funding round, nearly $700 million will be generated through equity.

Advanced talks are underway with one of the three sovereign funds based in the Middle East to lead the funding round, the report added.

The round is anticipated to conclude within a month from now, the report said.

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