Indian tycoon Ranjan Pai takes over $100 million convertible loan from US hedge fund Davidson Kempner Capital Management to Byju’s, according to sources. Pai’s family office, which focuses on healthcare and education, is in talks to invest in Byju’s tutoring unit, Aakash Educational Services Ltd. As part of the transaction, Pai will have the right to nominate two members to Aakash’s board. This move is part of Byju’s plan to revitalize its struggling business, after Davidson Kempner only gave out less than half of the $250 million of convertible debt it had offered due to unmet loan agreement covenants, as reported by Bloomberg in June.
Representatives for Pai and Davidson Kempner have not responded to requests for comment, while a spokesperson for Byju’s declined to comment. This investment comes after Byju’s recent publication of its first results in years, showing marginally narrowed losses at its parent company amid a pandemic-era boom in business. Byju’s is also in discussions to sell its US-based kids’ digital reading platform to ease financial pressures.
The struggle with the US fund and other creditors has brought attention to founder Byju Raveendran, whose remarkable ascent from tutor to head of India’s most valuable tech startup has impressed investors.
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