Byju's Proposes Swift Repayment Plan For $1.2 Bn Loan: Report

Byju's has taken the financial world by surprise with a bold proposal to repay its entire USD 1.2 billion term loan in a remarkably short timeframe, anonymous insiders familiar with the situation told Bloomberg News.

Under the proposed plan, Byju's is offering to reimburse USD 300 million of its distressed debt within the initial three months, with the remaining balance to be cleared over the subsequent three months. 

The move comes after nearly a year of strained negotiations between Byju's and its lenders, marked by unsuccessful attempts to overhaul the loan agreement. The situation worsened when Byju's decided to skip an interest payment on its term loan, which is one of the largest ever undertaken by a startup on a global scale, intensifying the underlying dispute and the mounting financial pressure on the company.

Byju's is now pushing for a speedy resolution and implementation of the proposed amendment. However, the outcome remains uncertain, with negotiations being a critical step in a broader effort to salvage the company, which was once India's most valuable startup, valued at USD 22 billion.

Byju Raveendran, the founder of the eponymous learning app, launched the platform in 2015. The firm, officially known as Think & Learn Pvt, secured the USD 1.2 billion five-year loan in 2021 to fuel its expansion beyond Indian borders.

(Inputs from Bloomberg)