Report: Byju’s Wants $250 Million in Aakash Pre-IPO Investment

According to persons who know the matter, Byju’s, one of most valued tech companies worldwide, is looking to raise $250 million through the sale of convertible notes by its teaching business, Aakash Educational Services.

They claimed, requesting anonymity because the information is confidential, that Aakash Educational Services might release the convertible notes at a 20% discount to the unit’s anticipated IPO original asking price.

Without going into specifics due to the delicacy of the subject, they stated that certain Byju’s investors are anticipated to partake in the round.

Aakash’s pre-IPO round will assist the firm get through a cash crunch while efforts to raise money at the corporate level are being held up by a protracted due diligence procedure. According to Bloomberg News, the Bengaluru-based startup had begun discussions with bankers early last year to choose arrangers for Aakash’s IPO. A Byju’s spokesman declined to comment.

The three-decade-old Aakash, which Byju acquired in 2021 for approximately $950 million, operates physical centers to assist students in getting ready for the demanding exams that determine who gets into prestigious colleges like the Indian Institute of Technology.