Funding

• Byju's faced setbacks as creditors pulled out of negotiations to recast a USD 1.2 billion loan, accusing the company of concealing USD 500 million in raised funds. Lenders can now sell the loan securities as negotiations end; however, Byju's plans to do independent outreach for renegotiating terms. The company also expects a substantial capital infusion to aid loan repayment. (June 01, 2023; ABP LIVE)

• Swing Education raised USD 38 million in a Series C funding round led by Apax Partners and Reach Capital to address the nationwide substitute teacher shortage and expand the platform's reach. (June 01, 2023; Press release)

• Saga Education received the Equity in Education grant from the Foundation for MetroWest, enabling it to provide high-impact tutoring to 20 students in Milford, Massachusetts. The funding supports tutor training, curriculum development, and an online tutoring platform. The partnership with the Milford School District and Life Science Cares Boston aims to improve math proficiency and student outcomes. (June 30, 2023; Press release)

New product/service launch

• Byju's unveiled three new transformer models as part of its commitment to leveraging AI in education. The models include 1) Badri, a predictive AI model that identifies students' struggles and offers recommendations for addressing knowledge gaps; 2) MathGPT, which assists students in solving math problems by providing analogies and visual aids; and 3) TeacherGPT, which offers personalized guidance and grades responses. (June 07, 2023; Business Today)

• Shape Robotics introduced the STEAMLab Assistant, an innovative educational app that combines speech recognition, Text-to-Speech, object recognition, and advanced AI capabilities to revolutionize the learning experience in STEAMLabs, empowering students through the seamless integration of technology and education to foster creativity, critical thinking, and problem-solving skills. (June 27, 2023; Press release)

Partnerships

• PowerSchool partnered with Stepwell, a web-based platform specializing in special education compliance and monitoring, to streamline monitoring and compliance processes for Individuals with Disabilities Act (IDEA) requirements. PowerSchool Special Programs users now have access to Stepwell's tools, including modernized dashboards, an integrated workflow engine, data visualizations, a monitoring item bank, and a single platform for reporting and analysis. (June 08, 2023; Press release)

Industry news

• Byju's is reportedly planning to cut ~1,000 staff members—primarily from its on-ground sales teams hired through third-party contractors as part of its ongoing efforts to streamline operations and reduce costs. This move comes as Byju's growth has slowed down and the company is shifting its focus toward building a hybrid model with subsidiary firm Aakash. The company had previously laid off over 2,500 employees, including those in senior roles. (June 08, 2023; Times of India)

• Prosus, the largest non-founder shareholder in Byju's , has significantly reduced the value of its stake in the company from USD 6 billion to USD 493 million. Byju's, which had a valuation of USD 22 billion during recent funding rounds, is facing challenges such as legal battles, board member resignations, and the departure of auditing firm Deloitte. Prosus, along with Peak XV Partners and Chan Zuckerberg Initiative, resigned from the Byju's board after Deloitte revealed the company had failed to deliver its financial results. (June 27, 2023; TechCrunch)