According to a Bloomberg story, edtech giant BYJU'S wants to generate up to $250 million through the sale of convertible notes by its tutoring service division.
Aakash Educational Services, a company that BYJU'S purchased, will issue the convertible notes at a 20 percent discount to the unit's anticipated IPO listing price, according to Bloomberg.
The pre-IPO transaction at Aakash will assist the edtech giant avoid a liquidity crisis as the parent firm keeps discussing financing, a process that has been pushed out due to the drawn-out due diligence procedures.
According to Bloomberg News, the Bengaluru-based startup had begun discussions with bankers late last year to select arrangers for Aakash's IPO.
In a Bloomberg story, the corporation is in separate discussions with creditors to restructure the terms of a $1.2 billion loan arrangement that is in violation of covenants.
BYJU'S declined to make any additional comments.
BYJU'S purchased Aakash in 2021 for roughly $1 billion. In addition to WhiteHatJr and other acquisitions, Aakash is one undertaken by the edtech firm. Aakash, in contrast to WhiteHatJr, has been operating profitably.
She added that although she was unable to provide a timetable at the moment, the company intends to list Aakash in India.
BYJU'S hasn't submitted its FY22 figures yet. Think & Learn Pvt. Ltd., the parent company of BYJU, reported that its consolidated losses increased by almost 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20. Operations' revenue increased somewhat from FY20 to FY21, rising to Rs 2,280.26 crore from Rs 2,189 crore. The company blamed the slow growth on a modification to how it accounts for sales, as suggested by its auditing firm Deloitte Haskins & Sells.