BYJU’S raised $ 1.2 billion through term debt funds

India’s most valuable startup BYJU’S has raised $ 1.2 billion through Term Loan B (TLB) funds, making it the second largest TLB company in India after Hospitality Unicorn Oyo.

According to regulatory filings, EdTech chiefs will use the proceeds to fund offshore general corporate purposes, including supporting business growth in North America and funding potential inorganic growth opportunities.

BYJU’S had earlier planned to raise 700 million, but a later return commitment led to an increase in the round. The term loan will be a five-year term credit facility with an interest rate of 6.78 per cent on the maturity of the loan, sources said. The company is working with American multinational investment banks JPMorgan and Morgan Stanley to design a term loan.

Kamal Yadav, Managing Director, Morgan Stanley, said, “BYJU’s TLB (Term Loan B, also called Institutional Term Loan), a historic success as the largest unrated TLB in India and Asia as well as the largest unrated TLB globally. Reflects the company’s strong credit story as one of the largest and fastest growing global EdTech platforms. “

BYJU’S, which has spent $ 2 billion on mergers and acquisitions in 2021, also plans two more acquisitions to drive international expansion.

In September, BYJU’s acquired US-based coding startup Tynker for about $ 200 million. Earlier, Great Learning acquired the upskilling platform for $ 600 million and plans to invest $ 400 million more in this segment, as it seeks to expand its educational services globally. Overall, the Bengaluru-based firm has made nine acquisitions in the Adtech space this year and more than 15 acquisitions since its inception.

The company has also recently acquired the online test preparation platform GradeUp to increase its presence in the rapidly growing online competitive exam preparation category.

In October, BYJU’S announced the raising of R 2,200 crore (approximately $ 296 million) in a new round of funding, led by Oxhote Venture Fund, Edelweiss Private Investment Trust, which includes The company is valued at $ 18 billion. Earlier this year, Adtech Decacorn expanded into overseas markets with ‘Future School’ offers in the US, UK, Brazil, Indonesia and Mexico.

BYJU’s claims that it has 100 million registered students with 6.5 million paid members on its platform. The company had a net profit of Rs. Revenue increased by 82.31% to Rs 2,381 crore in FY20 from Rs 1,306 crore.

About the author

Author: Shalini Pathak

Shalini Pathak is a staff writer at EdTechReview (ETR) – India’s leading Adtech media and community. She has four years of experience in media covering various beats. Like all writers, she is first and foremost an avid reader who has a passion for creating content out of the box and has the ability to write on any topic. As part of the ETR team, it will cover the latest developments in the Adtech industry, focusing on the stories of Adtech startups and their funding.

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