Byju’s has hired investment banks to raise at least $500 million in Term Loan B (TLB) borrowings in the United States, as India’s most valuable startup seeks to replenish its war chest with debt after spending billions of dollars on acquisitions this year, according to three people familiar with the development.
The EdTech unicorn will mostly use the funds for acquisitions, with a part of the funds also being used for working capital.
“Byju’s is working with American investment banks JP Morgan and Morgan Stanley to structure the TLB financing. They are looking to raise at least $500 million, but the deal could be upsized depending on the demand,” A person close to the source said “US investors are warming up to Indian tech companies, and the TLB market is expected to see some more deals. As the Indian tech ecosystem has seen a dynamic shift following the pandemic and dozens of unicorns getting created, Indian tech companies have achieved significant scale to make them attractive for these institutional investors,” he added.
Byju’s has been on acquisition spree in recent months, acquiring higher education platform Great Learning for $600 million, kids’ digital reading platform Epic for $500 million, and test preparation service Aakash Educational Services for $1 billion all in fast succession.
