Byju's Approves Aakash IPO For 2024 As It Faces Crisis Over Loan Repayment

Byju's may not have had a great year with losses skyrocketing and layoffs that left thousands jobless, even as it hired Lionel Messi as a brand ambassador. But despite raids by the enforcement directorate among other headwinds, Byju's continues to eye profitability and growth.

With this in mind, its board has approved an initial public offering for its test preparation arm Aakash.

Raising funds to service debt?

The share sale which was originally planned for this year, has now been scheduled for mid-2024, and Byju's hopes to raise $1 billion through the IPO.

Byju's is raising money via Aakash at a time when the deadline for quarterly interest payments on a $40 million loan from 2021 is closing in on the startup.

Byju's has also been dragged to court in Delaware by its creditors, after they ended talks for renegotiating terms of its debt.

The edtech startup has denied allegations of hiding $500 million from its creditors.

Right time to enter the market?

The move by Byju's comes at a time when other startups have called off or postponed stock market debuts citing volatility.

But the IPO market may be gathering steam as the likes of Oyo and Ola are now gearing for long-awaited IPOs after delays.