Byju’s takes $36m unsecured loan from subsidiary (update)

Indian edtech giant Byju’s has borrowed 3 billion rupees (US$36.4 million) from its wholly owned subsidiary, Aakash Educational Services, according to Moneycontrol.

The unsecured loan – with an interest rate of 7.50% per annum – was taken as an “advance against the marketing activities and campaigns that Byju’s has been running for Aakash,” the company said in a statement.

The deal comes as Byju’s secured US$250 million from existing investors this month.

The firm, which is India’s biggest loss-making startup in FYE 2021, is undertaking aggressive cost-cutting measures in a bid to achieve profitability by March next year. Earlier this month, the company revealed plans to lay off 2,500 employees or 5% of its total workforce.

Moneycontrol reported that new investors in the firm earlier offered Byju’s a lowered valuation of US$11 billion to US$12 billion amid a prolonged funding winter in the edtech space. However, Byju’s latest funding round was pegged at US$22 billion – its current valuation.

See also: The $22b question on Byju’s valuation

Update: This article was updated to include a statement from Byju’s.

Currency converted from Indian rupee to US dollar: US$1 = 82.33 rupees