Edtech giant BYJU’S is currently in the process of raising Rs 600-700 crore to support its operations until March, as it expects to generate funds through the sale of Epic and a partial stake sale in other subsidiaries.
Sources indicate that BYJU’S founder Byju Raveendran recently leveraged home and real estate assets owned by family members to secure funds for paying salaries, addressing a monthly gap of around Rs 50 crore in operational expenses.
Promoters are also exploring debt options to cover operations until March, with the anticipation that the situation will improve through the sale of Epic and partial stake sales in other subsidiaries. BYJU’S has called for an Annual General Meeting on December 20, where the pledged assets will be brought to the attention 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 sponsorship dues. Additionally, existing investors are expected to infuse funds into the company. The AGM notice sent to shareholders includes seeking approval for standalone and consolidated financial results for FY22.
Last month, Manipal Education and Medical Group Chairman Ranjan Pai acquired Rs 1,400 crore debt raised by BYJU’s from Davidson Kempner, which 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, and his proprietary fund, Aarin Capital, was the first institutional investor in BYJU’S in 2013. An email query sent to BYJU’S elicited no reply.
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