When in doubt, turn to debt. That seems to be the mantra for a growing number of start-ups looking to raise capital. Last month, Think & Learn, which runs the edtech decacorn Byju's, raised $250 million from Davidson Kempner Capital Management, a US-based investment firm. This is part of an ongoing $1 billion funding round which it hopes to close soon.
This funding comes when the Indian edtech giant faces several headwinds. In April 2023, Black Rock, which has less than 1% in Byju's, slashed the value of its investment by nearly 50%. The US-based asset manager pegged its per-share value at $2,400 in December 2022, down from $4,600 in April 2022.
In the same month, global investment group Prosus put the fair value of its 9.67% stake in the edtech at $578 million. This slashes the valuation of the edtech major to around $6 billion from the $22 billion valuation last year.
Recently, Bloomberg reported that Alpha, Byju's non-operating holding company in the US, was sued by its lender, Glas Trust Company, which claimed the former had defaulted on a $1.2 billion loan. The lawsuit against Alpha, Byju's director Riju Raveendran and Tangible Play Inc alleges that the company also hid $500 million from its lenders and transferred it out.
Calling the accusations of hiding the money "bewildering", Byju's stated that though it did transfer the funds to other operational entities, this act did not "contravene any Credit Agreement". Instead, it claimed that the money was transferred to other operative entities for growth and expansion in its global operations.
هذه القصة مأخوذة من طبعة June 2023 من Outlook Business.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة June 2023 من Outlook Business.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry
BATTLE TO WIN THE AI RACE
In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively
A LEADER WHO EMPOWERS
Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content
EV Unplugged
Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome
Every Lamborghini Owner is a Brand Ambassador
Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts
NO ZEST FOR ZED
A government initiative to green MSMEs is not finding enough takers
SMALL PLANTS, BIG TROUBLE
Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods
'We Think About the Rider More Than Any Other Company
Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts
LABOUR PANGS
Rising cost of living in a fast-growing economy is making workers restless
'Hustle is No Virtue'
It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.
