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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
For the past two years, Byju’s has been offloading chunks of its receivables. These transactions, which have gone unnoticed, raise several questions.
Editor's note: There is something unusual happening at Byju’s, India’s largest education technology company, which was last valued at upwards of $20 billion and counts Sequoia, SilverLake, Blackrock, General Atlantic, Tiger Global and the Chan-Zuckerberg Initiative as investors. According to documents accessed by The Morning Context, Byju’s—incorporated as Think & Learn Pvt. Ltd—has been offloading significant chunks of its trade receivables through pass through certificates, or PTCs. A total of eight tranches of PTCs have been sold by the company since 2019. A PTC is a financial instrument, specifically a securitization transaction where an issuer pools illiquid financial assets (like trade receivables) into marketable securities that can be sold to investors. An issuing company, usually a non-banking financial company, issues PTCs which are in the nature of participation certificates that enable investors to take a direct exposure on the performance of the securitized assets. What does that mean? An NBFC could do a securitization transaction where it takes, say, 10,000 loans worth Rs 10 lakh each; it then packages that and sells it to investors. The lender generates immediate cash flows while …
For the past two years, Byju’s has been offloading chunks of its receivables. These transactions, which have gone unnoticed, raise several questions.
Editor's note: There is something unusual happening at Byju’s, India’s largest education technology company, which was last valued at upwards of $20 billion and counts Sequoia, SilverLake, Blackrock, General Atlantic, Tiger Global and the Chan-Zuckerberg Initiative as investors. According to documents accessed by The Morning Context, Byju’s—incorporated as Think & Learn Pvt. Ltd—has been offloading significant chunks of its trade receivables through pass through certificates, or PTCs. A total of eight tranches of PTCs have been sold by the company since 2019. A PTC is a financial instrument, specifically a securitization transaction where an issuer pools illiquid financial assets (like trade receivables) into marketable securities that can be sold to investors. An issuing company, usually a non-banking financial company, issues PTCs which are in the nature of participation certificates that enable investors to take a direct exposure on the performance of the securitized assets. What does that mean? An NBFC could do a securitization transaction where it takes, say, 10,000 loans worth Rs 10 lakh each; it then packages that and sells it to investors. The lender generates immediate cash flows while …
The Abu Dhabi investment firm just upped the AI stakes, private debt in the Gulf is having its moment in the sun, and other updates from this week.
The regional economy is expected to take a big hit in 2026, venture capital activity is starting to show signs of strain, and Saudi Arabia’s sovereign fund has a new investment strategy.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
The Abu Dhabi investment firm just upped the AI stakes, private debt in the Gulf is having its moment in the sun, and other updates from this week.
The regional economy is expected to take a big hit in 2026, venture capital activity is starting to show signs of strain, and Saudi Arabia’s sovereign fund has a new investment strategy.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
