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Sovereign Wealth Funds (SWFs) in Abu Dhabi are in talks with the parent company of Byju's, the Indian edutech startup, to join its $400–$500 million fundraising, according to a report.
Byju's is planning to go public in the US by combining with popular SPAC Churchill Capital, led by CEO Micheal Klein, in a deal that would value the business at over $40 billion.
"Byju’s potential investors are being given two options either they come as equity investors at a $22 billion valuation or opt for a convertible pre-initial public offering instrument with a 20% discount to an IPO valuation band," Indian financial daily The Economic Times reported, citing sources close to the development.
"The floor of the band is $22 billion while the ceiling is pegged at $35 billion. If the IPO timelines are delayed, the valuation discount will go up every six months," the report said.
ADQ, Abu Dhabi's state holding company, invested in Byju's in June 2021. The Qatar Investment Authority (QIA), the country's sovereign wealth fund, invested in the startup in 2019.
(Writing by Seban Scaria; editing by Daniel Luiz)
