Lenders will typically give you 5-6 years to repay the entire thing. But this kind of loan structure carries a fair bit of risk. Baiju's apparently didn't fulfill either of these conditions. People wanted to get the loan off their hands. By September 2022 the loan was trading at a 30% discount in the market.
Edtech giant Byju’s just defaulted on a $1.2 billion loan. And it's not because it doesn’t have money (Or at least that’s what it says). Rather, it pins the blame on the lenders who’re allegedly harassing the company.
So in today’s episode for 8th June 2023, we dive into what on earth is happening at Byju’s.