For more capital, Byju’s must pass a tough test

economictimes.indiatimes.com:

capital infusion into the beleaguered edtech firm that is battling a deepening fund crunch, people in the know of the matter said.
These investors have asked the company to file its audited financials for the year ended March 31, 2023, at the earliest. In addition, they want founder Byju Raveendran to loosen his day-to-day control over operations at the firm, the sources added.

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Meanwhile, furthering his role as a white knight to the Bengaluru company, Manipal Education and Medical Group chairman Ranjan Pai extended around Rs 250-270 crore in fresh funding to Byju’s a few weeks back, according to the people cited above.

Also read | Ranjan Pai has a ‘Powar’ plan for family office Claypond Capital

‘Company requires around $120-130 million’

In exchange, Raveendran has pledged a part of his personal stake in Byju’s subsidiary Aakash Institute, they told ET on condition of anonymity. The Byju’s founder owns about 27% stake in Aakash.

Also Read: ED issues show cause notice of Rs 9,362 crore to Byju’s for forex violation

The latest funding by Pai is separate from his investment of Rs 1,400 crore in Aakash on November 10 that was used to clear Byju’s debt to US lender Davidson Kempner.

Byju's had promised shareholders it would file the delayed FY23 results by December 2023 but is unlikely to meet this deadline.


“For anything to move from existing investors, audited FY23 financials would be required,” said one person aware