Byju’s, an Indian ed-tech startup is in talks with Texas Pacific Group Capital (TPG) to raise more than $500 million.

People familiar with the matter have said that the negotiations are ongoing and it is unclear if the prospective investors will go ahead with the deal.

2022 was been a difficult year for the ed-tech Byju’s. From delayed results to the recent allegations imposed by the National Commission for Protection of Child Rights, the most valued start-up in India found itself in the middle of several controversies last year. The company has sacked thousands of employees and has taken deeper cuts, but has been unable to achieve profitability at the group level amid mounting losses.

Byju’s raised billions of dollars in capital from General Atlantic and Tiger Global during the pandemic. However, after the tech downturn worldwide, the company faces multiple challenges, including a long-delayed filing of audited financial statements.

In addition, Byju’s parent, Think & Learn Pvt. Ltd, saw its consolidated losses widen by nearly 20 times to Rs 4,588.75 crore in FY21 from Rs 231.69 crore in FY20.

The firm attributed the subdued growth to a change in the way it recognizes revenue, as advised by its audit firm Deloitte Haskins & Sells.

Revenues from operations grew marginally to Rs 2,280.26 crore in FY21 from Rs 2,189 crore in FY20.

The report also stated that the company is in separate talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants.

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