Byju's filed a suit against US-based investment management firm Redwood to challenge the acceleration of the $1.2-billion term loan B facility, and disqualify the lender for its "predatory tactics"
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Byju's didn't pay $40 million in interest due Monday on its $1.2 billion loan
The edtech giant has launched Byju's Wiz, a suite of three AI transformer models - BADRI, MathGPT, and TeacherGPT
The company chalks up its current debt predicament to aggressive distressed-debt investors who, in its view, were never supposed to be able to buy the loan
Files suit against Redwood, alleging predatory tactics
The $1.2 billion debt is the largest unrated loan by a startup ever. The once high-flying company led by former teacher Raveendran had been trying to strike a deal with creditors to restructure loan
Byju's has to make an interest payment on the loan by June 5
Byju's started negotiating its credit agreement after it breached investor protections on the debt by missing a deadline to disclose annual financial results
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More than 70 investors have invested in Byju's and they have conducted thorough due diligence, he said. "We are confident that the authorities will also come to the same conclusion," he added
After financial crime-fighting agency ED searched Byju's premises, the education platform's CEO Byju Raveendran wrote to employees saying the company brought more FDI to India than any other startup
A day after ED conducted searches, seizure action at premises of Byju's, the founder and CEO Raveendran said that the company has taken all efforts to comply with all applicable foreign exchange laws
During the search & seizure action various incriminating documents and digital data were seized
This comes as the edtech company is looking to raise at least $400 million to $600 million from investors
Byju's has volunteered to raise the interest rate for the loan by about 200 basis points (bps), but it has not agreed to the prepayment clause so far
Last year, Byju's laid off about 600 employees at its group companies - WhiteHat Jr and Toppr
Byju's is scrambling to appease creditors and investors already concerned about mounting losses at the once high-flying startup
Raveendran is in the midst of overhauling the company's strategy and cutting marketing spend with a goal to be profitable by March
Raveendran acknowledged that the first six years of Byju's were those of steady growth and the next four -- from 2017 to 2021 -- saw the company's exponential rise