BENGALURU (Reuters) – Indian edtech startup Byju’s is in talks with investors including U.S. private equity firm TPG Inc to raise over $500 million, Bloomberg News reported on Thursday, citing people familiar with the matter.
Investment firms including TPG and two Middle Eastern sovereign wealth funds have begun due diligence on the Bengaluru-based startup, according to the report.
Talks are ongoing and it is unclear if the investors will progress with the deal, Bloomberg reported.
Byju’s and TPG declined Reuters’ requests for comment.
The online learning platform, which was valued at around $22 billion in September, has been racking up costs as it spends heavily on promotions and employee salaries.
Byju’s also said in October it would lay off 2,500 employees in its push towards achieving profitability by March 2023.
The company reported a loss of 45.64 billion rupees ($552.11 million) in May for fiscal 2021.
($1 = 82.6650 Indian rupees)
(Reporting by Varun Vyas; Editing by Anil D’Silva)