Edtech startup Byjus raises $1.2 million in term loan

Edtech startup Byjus raises $1.2 million in term loan

Byju’s, India’s most valued privately held startup, has received $1.2 billion in a term loan from the international market. According to sources familiar with the matter, the edtech business, valued at $18 billion, had originally expected to raise $700 million, but the round was increased in size.

According to the sources, the company has taken advantage of the interest rate arbitrage available in worldwide markets, which has resulted in record low rates. Byju’s raised financing at Libor + 550 basis points, which is significantly cheaper than what is available in local markets.

The London Interbank Offered Rate, or Libor, is the benchmark against which foreign interest rates are determined and borrowings are made. For such loans, the six-month Libor is often considered. The rate was 0.22 percent on Monday.

“This is the largest unrated TLB from India and Asia as well as one of the largest unrated TLBs globally. It reflects the strong credit story of the company as one of the largest and fastest growing global edtech platforms,” said Kamal Yadav, managing director at Morgan Stanley India.

The revenue will be used to fund general company objectives abroad, including business expansion in North America and future inorganic growth prospects, according to the edtech firm managed by Byju Raveendran.

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