Byju's CEO, in talks to raise $400 million to invest in edtech giant's $800 mn round

CIOReviewIndia | Monday, 14 March 2022, 03:24 IST

  • No Image

Byju Raveendran, founder and CEO of Byju’s is in talks with various international and domestic banks to raise $400 million as a loan to fund 50 per cent of the $800 million (about Rs 6,000 crore) funding round of the edtech giant, according to people familiar with the development. They said this move is part of the company’s strategy to show the founder's confidence in the firm as he is leading the round and help shore up investor interest at a time when the valuations are under stress globally.

Sumeru Ventures, Vitruvian Partners, and BlackRock also participated in this $800 million round, taking the Bengaluru-based company’s valuation to about $22 billion from $18 billion earlier, according to people familiar with the matter.

“Raveendran is in discussion with various international and domestic banks to raise $400 million as a loan against shares. This may help him to shore up investor interest at a time when valuations are under stress,” said a person. “It is a confidence-building measure to show that the founder is leading the funding round and also tell the existing investors 'not the worry about the valuation'.”

After committing $400 million, which the company termed as ‘personal investment,’ Raveendran’s stake in the firm has jumped from 22 per cent to about 25 per cent, according to the sources.

🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...