According to Moneycontrol, the largest edtech company in India, Byju’s, has borrowed 3 billion rupees ($36.4 million) through its sole subsidiary, Aakash Educational Services.
The firm claimed in a statement that the unsecured loan, which has an interest rate of 7.50% per year, was obtained as an “advance against the marketing activities and campaigns that Byju’s has been executing for Aakash.”
The agreement comes after Byju’s this month received US $250 million from current investors.
The company, which will be the largest loss-making startup in India in FYE 2021, is aggressively slashing costs in an effort to turn a profit by March of 2019. The corporation announced intentions to fire 2,500 workers, or 5% of its whole staff, earlier this month.
According to Moneycontrol, amid a protracted fundraising winter in the edtech sector, new investors in the company had previously provided Byju’s a reduced valuation of US $11 billion to US $12 billion. Byju’s most recent investment round, however, was based on its current valuation of US $22 billion.
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