More investments for Byju's? Abu Dhabi's 10X AD, Apollo conduct talks

This comes as the edtech company is looking to raise at least $400 million to $600 million from investors

10X AD, an Abu Dhabi-based company, and Byju's CEO, Byju Raveendran, are currently in talks about making investments in the parent company, Think and Learn Pvt Ltd, or its subsidiary, Aakash Education Services (AES), The Economic Times (ET) has reported. 

These talks come as the edtech company is looking to raise at least $400 million to $600 million from investors, the newspaper quoted people aware of the development.

10X AD specialises in structured investments in late-stage technology-based companies. There is little clarity about the manner in which this investment will be arranged. 

10X AD may either lead a consortium of investors and ultra-high-net-worth individuals in Abu Dhabi or may also go alone and make investments in the range of $150 million to $200 million, the report said.

 

The Bengaluru-based edtech firm has been struggling to make its business profitable. It has been under scrutiny for more than 18 months over issues like corporate governance, gaps in audits, business practices, poor financial results, and large-scale layoffs.

Byju's has also reached out to Apollo Global Management, a US private equity and alternative asset management company seeking $200-250 million in structured funding for Aakash, the ET report stated.

Besides 10X AD and Apollo Global, Disrupt AD, the Abu Dhabi-based ADQ's venture capital arm, may also double down on its earlier commitment, said people cited in the ET report. Disrupt AD invested in Byju's business in 2021 for the first time. 

Disrupt AD participated in earlier funding rounds and raised $350 million, which valued the edtech company at $16.5 billion, making it the most valuable edtech company in the world at the time of the fundraising.

The three-decade-old Aakash, acquired by Byju's for about $950 million in 2021, runs brick-and-mortar centres to help teenagers prepare for the competitive exams that rank them for entry into coveted schools such as the Indian Institute of Technology and other engineering or medical colleges. 

Unlike Byju's, Aakash has done well in its business. According to experts, Aakash has grown its business at a CAGR of 40-50 per cent.