Abu Dhabi’s SWFs to invest in Byju’s

Abu Dhabi’s sovereign wealth funds are in active negotiations with Byju’s parent Think and Learn Pvt Ltd, to be part of the $400-500 million fundraise. Qatar Investment Authority (QIA) is also in advanced talks to invest $250-350 million in the edtech company.

Byju’s potential investors are being given two options — either they come as equity investors at a $22 billion valuation or opt for a convertible pre-initial public offering instrument with a 20% discount to an IPO valuation band.

The floor of the band is $22 billion while the ceiling is pegged at $35 billion. If the IPO timelines are delayed, the valuation discount will go up every six months. ADQ of Abu Dhabi has already invested in the company last year. ADQ was among investors in a $350 million fundraise by the company, at a valuation of $16.5 billion.

One of the spokespersons from the company said, “Byju is in talks with the royalty at UAE. They are keen on India and the edtech story. ADQ is also an existing investor, so there is comfort. It’s not yet clear which Abu Dhabi investment vehicle will come in. It’s possible this round will be led by International Holding Company (IHC).”

The edtech company is recently under pressure for its delayed financials. Moreover, it is facing heat from different authorities. There were reports that the edtech company was asked to give reasons for the delay in filing the audited financial statements for FY21. In FY20, BYJU’S posted a net profit of Rs 51 Cr on a revenue base of Rs 2,434 Cr.