Edtech major BYJU'S is in the process of raising Rs 600-700 crore to fund the company's operations till March when it expects to realise money through the sale of Epic and partial stake sale in other subsidiaries, the sources aware of the development told The Economic Times.  

BYJU'S founder Byju Raveendran has recently raised money by mortgaging home and real estate assets owned by family members for pay salaries. 

"There is about Rs 50 crore gap per month in operational expenses where a large component is salary. Promoters have pledged shares, homes, and some other real estate assets of family members to bridge the gap," a source said to ET. 

"The promoters are currently procuring a debt amounting to Rs 600-700 crore to support operations until March. It is anticipated that by March, the situation will improve, facilitated by the sale of Epic and the partial divestment of stakes in certain subsidiaries," the report added. 

According to the report, BYJU'S has scheduled an Annual General Meeting (AGM) for December 20, during which the assets pledged by the promoters will be presented to the company's board for consideration.  

"The company is currently working on presenting a repayment plan to the Board of Control for Cricket in India (BCCI) for sponsorship dues amounting to Rs 160 crore. In addition to the advanced-stage negotiations for the sale of Epic, there are expectations that the company will receive financial injections from existing investors," the source said. 

According to the AGM notice sent to shareholders, the company will also seek shareholders' approval for standalone and consolidated financial results for FY22. Although, the edtech has not commented on the news circulating in the media. 

Last month, Manipal Education and Medical Group Chairman Ranjan Pai acquired a Rs 1,400 crore debt raised by edtech major BYJU's from Davidson Kempner.  

The settlement includes a penal amount claimed by Kempner against debt investment of  $100 million, or about Rs 800 crore.  

Pai is also in discussions to buy additional stakes in AESL shortly. Ranjan Pai's proprietary fund, Aarin Capital, was the first institutional investor in BYJU'S in 2013.