According to sources, Byju has approached its lenders, including several banks and financial institutions, seeking a moratorium on its loans and a restructuring of its debt repayment schedule. The move comes as the company continues to expand its offerings through acquisitions, including the recent acquisition of US-based digital reading platform Epic for $500 million.
However, the lenders are said to be hesitant to agree to the loan restructuring without a substantial prepayment from Byju. The company has reportedly offered to make a prepayment of $100 million, but the lenders have asked for a higher amount.
Byju has been on an acquisition spree in recent years, acquiring several companies in India and abroad to expand its offerings in the ed-tech space. The company has also raised significant amounts of funding, with its valuation reportedly reaching $16.5 billion after a recent funding round.
Source:- Business Standard
However, the company’s rapid expansion has also led to a significant increase in debt. According to reports, Byju’s debt has grown from around $300 million in March 2020 to over $1 billion currently.
The company’s lenders are reportedly concerned about the level of debt and are seeking assurances from Byju that it will be able to manage its debt repayments going forward. The lenders are said to be seeking a prepayment of $200 million to provide some assurance that the company has the financial resources to manage its debt.
Source: Soch by Mohak Mangal
Byju has not yet commented on the reports of its loan restructuring negotiations with lenders. However, the company has previously said that it is focused on sustainable growth and profitability and that it is confident in its ability to manage its debt.
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