BYJU's all set to raise $500-$700 mn led by top VC firms

New Delhi, April 4 (IANS) Edtech major BYJU's is all set to raise around $500-$700 million in its latest funding round at a flat valuation of $22 billion, led by a couple of top private equity firms and sovereign wealth funds, which can happen anytime soon this month, reliable sources told IANS on Tuesday.

The funding round, anticipated for quite some time amid the deepening funding winter, will not only help BYJU's pay off some of its existing debt but also consolidate and grow its business further, according to people privy to the development.

"The round is led by top VC firms and some existing investors in BYJU's are also keen to participate, which may take the funding round to its maximum," sources told IANS.

"To meet the regulatory framework, a solid due diligence has been done by the BYJU's and the investors in taking the round to its concluding stage," they said, adding that this will help the edtech unicorn "come back with a bang" amid larger scrutiny and other problems it is currently going through with some of its acquisitions like WhiteHat Jr.

When reached, BYJU's did not immediately comment on the development.

The Financial Express was first to report about the development.

The latest funding round comes as the company is aiming to repay a huge $1.2-billion term loan B it had secured in November 2021.

The company has now appointed Ajay Goel as its chief financial officer (CFO), as it aims to strengthen the company's financial operations and achieve profitability.

In order to turn profitable, BYJU's is winding up coding platform WhiteHat Jr, which it acquired for $300 million, as part of restructuring and cut costs. The company had said it was "merely optimising it".

Edtech firm BYJU's did not meet its March 2023 deadline to achieve group-level profitability, as it envisioned in its earnings in October last year.