Byju’s manages to raise more capital… yet again 👀
For people who are new to edtech. The reality is most investors have chosen the winners. It’s BYJUs (due to Aakash) and PW (due to disruption on low end of the market) everyone left has to 1. Merge with competition 2. Make sustainable profits 3. Sell off business to PE, other conglomerates
Noctus
Stealth
a year ago
Ya I agree
The only rationale is Byju’s has scale.
To replicate the same level of scale is more difficult now and would require more capital.
Most likely, that is what investors are betting on.
Scrooge_McDuck
Stealth
a year ago
This is DEBT. This is like saying Vijay Mallaya ‘raised’ funds from banks. This level of tech reporting has got us where we are.
Flow
Stealth
a year ago
They won't have to pay if they eventually declare bankruptcy. They will go to nclt.
Scrooge_McDuck
Stealth
a year ago
No NCLT for a Venture Debt fund. Vast difference. No bank wants to lend to such shitty balance sheets.
cuckingfunt99
Stealth
a year ago
If I'm not wrong they've raised debt and not equity.
So it's not that delicious "free VC money" that these clowns just add to their "monthly burn".
They've gotta pay this back with interest.
1. Debt funding - it's basically a loan with interest with option to convert to equity.
2. Same valuation. It's okay I guess in the current environment? How did he keep the valuation from sliding I wonder.
3. Aakash offline saved their ass. Online edtech is in dump.
They have a monopoly, i was just exploring PW for a relative, that was equally expensive with random teachers with very basic education experience. No wonder they are able to raise money
