July 25, 2023

Bengaluru, India - Byju's, the Indian edtech giant, has reached an agreement with its lenders to alter the terms of its $1.2 billion loan. The agreement, which is subject to final documentation, would allow Byju's to extend the repayment period for the loan and reduce its interest rate.

The lenders, who collectively own more than 85% of the loan, have agreed to drop their demand for accelerated repayment. This means that Byju's will not have to repay the entire loan immediately, but will instead be able to repay it over a longer period of time.

The lenders have also agreed to reduce the interest rate on the loan from 10% to 9%. This will save Byju's millions of dollars in interest payments over the life of the loan.

The agreement is a major relief for Byju's, which was facing a liquidity crisis. The company had been struggling to raise new capital, and its stock price had fallen sharply. The agreement with the lenders will give Byju's some breathing room and allow it to focus on its business.

"We are pleased to have reached an agreement with our lenders," said Byju's CEO Byju Raveendran. "This agreement will allow us to focus on our core business and continue to deliver innovative learning solutions to our students."

The agreement is also a sign that the lenders are confident in Byju's future. The company is still the largest edtech company in India, and it has a large and growing user base. The lenders believe that Byju's will be able to turn around its financial performance and repay the loan in full.

The agreement is expected to be finalized by August 3. Once it is finalized, Byju's will be able to breathe a sigh of relief and focus on its business.