Byju’s, the edtech start-up, is reportedly planning to raise up to $250 million through the issue of convertible notes. This will be done by its arm Aakash Educational Services (Aakash).

Aakash was acquired by Byju’s for nearly $1 billion in 2021. The edtech major is planning a Rs 8,000 crore initial public offering (IPO) of Aakash in the domestic markets this calendar year.

A Bloomberg report said that the firm, which offers coaching services, will issue the notes that will convert into equity at a discount of 20 per cent to the listing price of the proposed share float.

Some existing investors in Byju’s are also expected to participate in the round.

The funding is expected to help the start-up tide over a liquidity crunch.

There were reports earlier this year that its founders Byju Raveendran and Divya Gokulnath are planning to increase their stake in the company to about 40 per cent and that they have initiated discussion with investors for this purpose.

They had last raised their stake from 23 per cent to 25 per cent in May 2022 in a $800 million funding round led by Byju Raveendran.

The edtech major, which has been posting losses, has claimed that it will turn profitable by March.