Byju’s has raised $250 million and is close to securing about $700 million more, two people familiar with the matter said, as the Indian edech giant builds up its war chest ahead of the highly-anticipated IPO of its subsidiary Aakash.
The New York-headquartered investment firm Davidson Kempner has invested $250 million in Byju’s via structured instruments, the people said, requesting anonymity as the information is not public. The firm is finalizing remainder of the capital from a sovereign fund, the people said.
The remainder of the capital, expected to arrive in within two weeks, will come into the startup as part of a convertible note that caps the valuation at $22 billion.
Byju’s has maintained its $22 billion valuation throughout the past year and a half even as numerous high-profile startups globally have had severe corrections in their value.
Davidson Kempner and Byju’s did not immediately respond to a request for comment.
The large financing round in Byju’s comes at a time when the Indian startup ecosystem is reeling from the funding crunch amid weakening global economy. At $22 billion valuation, Byju’s is India’s most valuable startup.
Byju’s is in advanced discussions with bankers including Citi and Goldman Sachs to go ahead with the IPO of Aakash, a physical tutor chain it acquired for nearly $1 billion two years ago, TechCrunch reported earlier.
Byju’s has received the approval from its board of directors to go ahead with the IPO of Aakash, which it acquired for nearly $1 billion last yearand it’s gearing up to file the paper work.