Edutech firm Byju’s to raise $50 million
Funding to help it expand into the UK, US
Bengaluru-based education technology (edutech) firm Byju’s says it is in advanced stages of talks to raise $50 million (about ~336 crore) in funding, which will help it expand into the US, the UK and other countries over the next few months.
Byju’s says it will utilise the newly raised capital to make acquisitions in markets where it plans to enter. The news of fresh fund-raising comes roughly four months after the company raised $75 million from Sequoia Capital and Sofina.
“We are humbled by the rising popularity and high engagement for our product with 90 per cent annual renewal rates from the students. We are constantly innovating the way in which we make learning accessible, effective, engaging and personalised,” stated Byju Raveendran, founder and chief executive officer of Byju’s.
The investment in Byju’s, which is considered to be one of the leading edutech services in India, comes at a time when investors’ interest in the space is growing. In the year ended March 31, edutech companies in India had raised a combined $85 million, out of which $75 million was raised by Byju’s alone.
Since then, apart from several seed-stage investments in edutech firms, there have been a few larger investments, too. Last month, Cuemath, a technology platform for homebased learning centres, raised $4 million in Series-A funding from Sequoia Capital and Unitus Seed Fund. Byju’s, which says its application has been downloaded five million times, is currently present in India and West Asia. The firm converts lessons for K-12 students (primary and secondary) into video format with the innovative use of graphics to explain concepts. It says it has nearly 200,000 paid subscribers.
Revenue in June stood at ~30 crore and Byju’s says it is already profitable and growing at a pace of 15 per cent monthon-month. The firm also registers high engagement, with the app being used by students for 40 minutes a day on an average, bolstering the idea of e-learning in India.