| | SEPTEMBER 20228Abu Dhabi's sovereign wealth funds are in active negotiations with Think and Learn, the parent of Byju's, to be part of the $400-500 million fundraise that the firm is planning, said people close to the development. Qatar Investment Authority, which had been in advanced talks to invest $250-350 million in the edTech company, is yet to take a final call, say sources. It had been planning to invest at a 40-50 percent discount to the $22 billion the company had commanded in its last round.Byju's is yet to file its financial results for the years ended March 2021 & 2022. The company has told lenders and debt investors that it is likely to finalize audited financial results for FY21 -- approved by its official auditor Deloitte -- by September 6th. Any investment prior to the company announcing its financial results may raise eyebrows, experts said.Sources close to the firm said 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 percent discount to an IPO valuation band. 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. ADQ of Abu Dhabi has been an investor in the organization since last year. ET had reported June 12th last year that ADQ was among investors in a $350 million fundraise by the company, which had pegged valuation at $16.5 billion, making it the most valued edtech company in the world.There is a possibility Byju's may look to string together an investor consortium. "Byju is in talks with the royalty at UAE", said one of the persons cited above. "They are keen on India and the edTech story. ADQ is also an existing investor, so there is comfort. It's not yet clear which Abu Dhabi investment vehicle will come in. It's possible this round will be led by International Holding Company (IHC)".Byju's CEO Byju Raveendran declined to comment on speculation. Syed Basar Shueb, CEO & Managing Director of IHC, didn't respond to queries. IHC is an investment vehicle and conglomerate chaired by Sheikh Tahnoon bin Zayed al-Nahyan, UAEs national security advisor and one of the country's most influential figures.QIA, the sovereign wealth fund of Qatar, led a $150 million round in 2019 along with Owl Ventures, when it had invested $50 million. Earlier this year, QIA and Byju's launched a new edTech business and state-of-the-art research and development centre in Doha. The new entity will drive research and innovation to create learning solutions customized for students in the Middle East and North Africa (MENA) region. The company is also reportedly spending $40 million to be an official sponsor of the football World Cup in Qatar later this year.Abu Dhabi's SWFs in Talks to Join $500 Million Byju's FundraiseIN FOCUS
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