Abu Dhabi Fund, Apollo Global may invest in BYJU’S parent or Aakash: Report

Abu Dhabi-based fund 10X AD is in discussions with BYJU’S CEO Byju Raveendran to invest either in the edtech giant’s parent company Think and Learn Pvt. Ltd., or its subsidiary Aakash Education Services (AES), according to a report by Economic Times. The company is looking to raise $400-$600 million from investors, sources told ET.
 
It is not clear if 10X AD will lead an investor consortium of family offices and ultra-high net worth individuals in Abu Dhabi or go alone to invest $150-$200 million. 
 
10X AD specialises in structured investments in late-stage technology companies. Typically, 10X AD makes $30-50 million bets on its own but leans on other pools and even institutions such as ADQ.
 
These structured investments have preferred rights, pick options and guaranteed internal rates of return (IRRs) for “downside protection,” said the people cited above. With this as an anchor consortium, a few other smaller investor groups from the region are also expected to join.
 
Disrupt AD, Abu Dhabi-based ADQ’s venture capital arm, may also double down on its earlier commitment, said the above-mentioned sources. Disrupt AD has been an investor in the company since 2021, having participated with others in a $350 million fundraise that had pegged the valuation at $16.5 billion. BYJU’S is the most valued edtech company in India followed by Swiggy and Dream11, according to Hurun’s Global Unicorn Index 2023. 
 
The report also stated that Apollo Global Management has also been approached for $200-$250 million structured funding for Aakash. This may be either at a discount to the next round or via a preferred instrument with a fixed pre-agreed internal rate of return (IRR) and downside protection. Byju’s initial approach to Apollo to join the parent’s cap table had been rebuffed.
 
Earlier Business Today reported that the edtech decacorn BYJU'S is raising $700 million in a fresh funding round which involves two separate deals of equity and convertible notes, sources have told Business Today. 
 
“The company is in the middle of closing the deal. The due diligence process is complete,” a source told BT and also revealed, “They are waiting for the money to get credited into their bank account. They want to close the deal completely before making the announcement.”
 
BYJU’S is yet to release its FY22 results. The company has been under the scanner for various reasons including corporate governance, audit lapses, business practices, poor financial results and mass layoffs.
 

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