Edtech major Byju’s raises Rs 2,000 crore in fresh funding from US investment firm

BENGALURU:  Edtech major Byju’s has raised $250 million (about Rs 2,000 cr) in a fresh funding round from US-based investment firm Davidson Kempner Capital Management, sources familiar with the matter told this newspaper.

Though the edtech company did not comment on the fundraising, this development comes at a time the Enforcement Directorate (ED) conducted searches and seizure action at the premises of the edtech major under the provisions of the Foreign Exchange Management Act (FEMA) recently.

The searches revealed that the company has received foreign direct investment to the tune Rs 28,000 crore during the period 2011 to 2023. Earlier, this newspaper had reported that the edtech company will raise funds soon. Sources had also said the company will raise $700 million more. Byju’s is also in talks with a few bankers to go ahead with the listing of Aakash, it's subsidiary.

In October last year, it took an unsecured loan of Rs 300 crore from its subsidiary tuition chain Aakash Educational Services that it acquired for $950 million in 2021. As per regulatory filings, the unsecured loan was granted to Byju’s at 7.50% interest rate. Also, the company raised $250 million in a fresh funding round from existing investors including Qatar Investment Authority (QIA) in the same month.