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Byju’s Plans for Funding: Edutech unicorn company Byju’s is once again preparing to raise funding. This time the company is going to raise $ 1 billion funding at the current valuation of $ 22 billion. This effort to get funds is also special because there has been a huge decline in the funding of Indian startups. The number of funding and deals has come down to the lowest in the last nine years.
With this, this funding round will be the biggest in recent times. The amount raised by this will help in providing great relief to the company in the regulatory investigation. Significantly, BYJU’S is not only India but the world’s highest valued Edutech company.
Raids at Byju’s CEO’s residence and office
Earlier, the Enforcement Directorate raided the Bengaluru office and home of Byju’s Chief Executive Officer (CEO) Ravindra Byju. ED had seized many documents and digital data. The raid was conducted under the Foreign Exchange Management Act (FEMA). Since then many questions are being raised on the company. In such a situation, after the funding of this round, it will be known that how much trust the investors have on the company.
There is a huge shortage of startup funding
Raising this funding for Byju’s is challenging in many ways because at this time many startup companies are facing shortage of money. In April, the funding figure for startup companies has reached the lowest level in the last 9 years. According to research by VCCircle, in April 2023, Indian startups have received a total of $ 381 million through angel investment and venture capital funding in 58 deals. In such a situation, it will be a difficult task for Byju’s to raise funding at such a huge valuation. Investors are currently avoiding investing money in any tech company.
How will the company get $ 1 billion
According to a report published in Moneycontrol, out of $1 billion, the company will get $700 million through equity. Apart from this, the remaining funding of Rs 30 crore will be obtained through structural instruments. Structured instruments are stock market dependent products. When the IPO of the company comes, there is a facility to convert it into shares.
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