by Byju’s, the Indian edtech giant, has reached an agreement with its lenders to restructure a $1.2 billion loan, according to a report by the Economic Times. The agreement, which is still subject to final approvals, would see Byju’s extend the maturity date of the loan by two years and reduce the interest rate.
The restructuring is seen as a sign that Byju’s is trying to shore up its finances amid a slowdown in the edtech sector. The company has been facing increasing competition from rivals like Unacademy and Vedantu, and it has also been criticized for its high valuations.
The restructuring would give Byju’s some breathing room to focus on its core business and to invest in new growth initiatives. It would also help to reduce the company’s debt burden, which stood at $4.5 billion as of March 2023.
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“We are pleased to have reached an agreement with our lenders to restructure our $1.2 billion loan,” said Byju’s CEO Byju Raveendran. “This agreement will provide us with the financial flexibility to continue to invest in our growth initiatives and to deliver on our mission of providing quality education to students around the world.”
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“We are confident that Byju’s will emerge stronger from this restructuring,” said a spokesperson for the lenders. “The company has a strong track record of growth, and we believe that this agreement will allow it to continue to invest in its future.”
The restructuring of Byju’s loan is a significant development in the edtech sector. It is a sign that the sector is still facing challenges, but it is also a sign that some companies are finding ways to adapt and survive.
