EdTech Unicorn had previously planned to raise $700 million, but the round was raised with recommendations due later today. The company has taken advantage of interest rate arbitrage available in global markets with record low rates. It has raised capital at the rate of LIBOR + 550 basis points, which is much lower than what is available in the domestic markets. LIBOR, or the London Interbank Offered Rate, is the benchmark on which foreign interest rates are determined.
Byju’s is working with US investment banks JP Morgan and Morgan Stanley to structure term loans.
“The historic success of BYJU’s TLB (Term Loan B, also known as Institutional Term Loan), as the largest unrated TLB in India and Asia, as well as one of the largest unrated TLB globally in history, As one of the largest and fastest growing global edtech platforms, said Kamal Yadav, Managing Director, Morgan Stanley, reflects the company’s strong credit story.
Byju’s plan uses term loan proceeds only for general corporate purposes, offshore, to support business development in North America and to fund potential inorganic growth opportunities.
the company
Spent more than $2 billion on acquisitions The past few months, however, have triggered consolidation in an industry that has gained due to the pandemic. In July, it acquired US-based kids learning platform
Epic in a $500 million cash and stock deal. It also achieved professional and higher education platform
Great lesson for $600 million In a cash and stock deal. this was it
achieved earlier Coaching Institute Aakash Institute and Online Coding Class Provider
whitehat junior.
Startup Rockstar in 2021
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Earlier this year, Byju’s
Expansion into overseas markets Through its ‘Future School’ offering in the US, UK, Brazil, Indonesia and Mexico. “The company is entering the North American market and will announce another strategic investment soon,” said another person with knowledge of the development.
A company spokesperson declined to comment.