interest rate<\/a> and a 5-7 yrs maturity period. Institutional investors, such as hedge funds provide loans with characteristics comparable to high-yield bonds.\u00a0<\/p>\n\n\n\nThe fact that a major portion of the principal and accrued interest will be paid on maturity makes these loans attractive to the new, fast-growing businesses. Byju\u2019s will largely use the capital to expand its acquisition strategy. It would also use some of the funds to meet its working capital needs. According to Bloomberg\u2019s report, Byju\u2019s is in talks with Fidelity, Blackstone, and GIC for the term loan. <\/p>\n\n\n\n
Byju\u2019s fundraising strategy comes at a time when the firm is debating whether to go public in both the United States and India next year. Meanwhile, the company has been stepping up its acquisition strategy this year in order to expand into new edtech categories of coaching, test prep, and higher education. This also includes strengthening its footprint in key geographies such as the United States.<\/p>\n\n\n\n
The company has made 9 acquisitions this year alone. They have spent close to $ 2.5 bn. on various edtech startups. In April, they paid over $ 950 mn. for Aakash Educational Services Ltd., reportedly one of the most expensive purchases in the Indian EdTech sector. Byju\u2019s also paid about $ 600 mn. for Great Learning, one of India\u2019s largest professional learning companies, signalling their foray into the upskilling market. The company bolstered their US incursion earlier this year by acquiring Epic, a kids reading platform, and Tynker, a code-learning site.\u00a0<\/p>\n\n\n\n
Byju\u2019s isn\u2019t the first Indian business to use the TLB method to raise funds. Oyo Hotels and Homes Ltd., a hospitality startup, obtained $ 660 mn. in debt capital from worldwide institutional investors in July. According to Oyo, the proposed issue was oversubscribed by 1.7 times, with close to $ 1 bn. in pledges from top institutional investors.<\/p>\n","protected":false},"excerpt":{"rendered":"
Byju\u2019s borrows $ 1.2 bn. to spend on acquisitions and the decision has been approved by the board of Think & Learn Pvt. Ltd. Read to know the details.<\/p>\n","protected":false},"author":45,"featured_media":5217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[872,949,950],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/new1-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5617"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5617"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5617\/revisions"}],"predecessor-version":[{"id":5619,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5617\/revisions\/5619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/5217"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}