Think & Learn Pvt, the company that runs BYJU’s, the world’s most valuable ed-tech company, will borrow Rs 300 crore ($36.45 million) from its wholly owned subsidiary Aakash Educational Services for its “principal business activities.” BYJU’S also announced earlier this month that it will be letting go of 2,500 employees, or about 5% of its workforce, from its product, content, media, and technology teams.
Edtech giant Byju’s, which was recently acquired for about $1 billion, has borrowed 300 crores from its subsidiary Aakash Educational Services.
BYJU requires these funds for the primary business operations of the company, according to Aakash’s regulatory filings. BYJU was given this unsecured loan with an interest rate of 7.50% annually. The board of directors of Aakash approved the loan on October 3, but it still needs the members’ approval at a general meeting.
Think & Learn Privately Limited is in need of funds for its primary business operations, according to Aakash Educational Services in its most recent filing with the Ministry of Corporate Affairs. The company’s board of directors, in their meeting on October 3, subject to the approval of members in the general meeting, has given their approval to grant an unsecured loan to Think & Learn for an amount not exceeding Rs 300 crore.
According to the filing, the loan was granted at a 7.50 percent annual interest rate.
With regard to the purchase of Aakash Educational Services, the ed-tech giant last month paid the remaining balance owed to international VC firm Blackstone of roughly Rs 1,983 crore (more than $245 million).
As per the terms of the agreement for the acquisition of Aakash Educational Services, consideration to the extent of Rs 1,983 crore was due to be paid by the company to the sellers in June 2022. This has been deferred to September 23, 2022, as stated by BYJU’s financial report for the fiscal year 2021.
Aakash is owned by Blackstone, and nearly 75% of the price paid to acquire Aakash was paid by BYJU.
Last week, BYJU’S raised $250 million from its current investors in a new round of funding. To take advantage of their synergies, it merged all of its K10 India subsidiaries into a single entity.
Aakash Education and Great Learning, which specialize in test preparation and upskilling, will keep running as separate, independent businesses.
A business called BYJU’s provides a platform for users, primarily students, to learn online with complete curricula and classes for test preparation. The business uses animations for students, interactive videos and simulations, and only original content.
The platform was established in Bengaluru, India, in 2008. The business was founded by BYJU Raveendran and Dyvia Gokulnath, with BYJU serving as CEO. BYJU’s purchased Osmo for $120 million in January 2019 with the intention of going global. Osmo is a business that focuses on educating young children. This purchase served as a tool for expanding the customer base.
A Disney-Early BYJU’s Learn app was developed with the intention of educating children between the ages of six and eight after BYJU purchased Osmo. Disney stories and characters are incorporated into some individualized learning programs. There is also a parental reporting system that uses digital worksheets to provide parents with real-time feedback.
The ed-tech giant BYJU announced last week that it would gradually reduce (or “rationalize”) about 5% of its 50,000-person workforce across departments like product, content, media, and technology. BYJU’s provided it audited the fiscal year 2021 financials 18 months late in September.
The change occurs as BYJU’s works to increase operating revenue while lowering costs. The company declared its intention to become profitable by 2024. The ed-tech company had previously declared that it would fire 2,500 workers over the next six months. Even if the actual number is different, it would be one of the biggest layoffs by a significant startup.
