Indian edtech giant BYJU'S is reportedly in the process of securing $1 billion in funding at its current valuation of $22 billion.
The funding will come through a combination of equity and structured instruments, which are market-linked investment products that can be converted into shares during events such as an initial public offering.
According to sources cited in a Moneycontrol report, $700 million of the total $1 billion funding will be raised through equity, with one of three Middle East-based sovereign funds leading the round.
The remaining $300 million will be raised via structured instruments, with discussions underway with US-based asset management firms Oaktree Capital Management, Apollo Management, and Davidson Kempner Capital Management.
Earlier reports indicated that BYJU'S was raising $700 million in a fresh funding round through separate deals involving equity and convertible notes. A source close to the matter revealed that the company is finalizing the deal after completing the due diligence process and awaits the funds to be credited to its bank account before making an official announcement.
The funding round is expected to conclude within a month and will enable BYJU'S to partially repay a portion of the $1.2 billion it raised in 2021. Additionally, the company is reportedly in talks with investors such as Texas Pacific Group Capital (TPG) to secure over $500 million in order to address potential debt concerns.