Think & Learn, the company that owns the world’s most-valued edtech startup Byju’s, will take an unsecured loan of Rs 300 crore ($36.45 million) from its wholly-owned subsidiary Aakash Educational Services for its “principal business activities”, according to a Moneycontrol report.
“Think & Learn is in the requirement of funds for its principal business activities… The board of directors of the company (Aakash Educational Services), in their meeting held on October 3, subject to the approval of members in the general meeting, has given their approval for granting unsecured loan to Think & Learn for an amount not exceeding Rs 300 crore,” Aakash Educational Services said in its latest filing with the ministry of corporate affairs.
It added that the loan is being granted at an interest rate of 7.50 per cent per annum.
Byju’s in April 2021 acquired Aakash for about $950 million in one of the biggest acquisitions in the Indian education space.
“The Rs 300 crore loan from Aakash Educational Services is in effect an advance against the marketing activities and campaigns that Byju’s has been running for Aakash… In order to benefit from the economies of scale, Byju’s buys media spots in bulk for all its group companies. This is a strategy that has yielded really positive results for both the group and Aakash,” Byju’s spokesperson said, according to Moneycontrol.
Read all the Latest Business News here