Byju’s to close latest funding round with $3.5 bn valuation
Online tutoring start-up Byju’s is expected to be valued at $3.5 billion at the close of its ongoing funding round, three people aware of the developments said, as heavy interest from top late-stage venture and private-equity investors boost its valuation far higher than originally anticipated.
Raising funds at this valuation will make Byju’s India’s fourth most valuable startup, behind digital payments firm Paytm, cab hailing service Ola and budget hotel chain Oyo Rooms.
In its latest round, which is on the verge of closing, Byju’s is set to raise roughly $200-300 million in primary and secondary capital from new investors such as private equity giant General Atlantic, the people mentioned above said.
The secondary transaction may happen at a lower valuation and some existing investors, including Sequoia Capital, may secure either partial or full exits, they added.
All three of them requested anonymity. Mint could not immediately ascertain the valuation of the secondary deal.
If the fund raising closes at a valuation of $3.5 billion, it would more than treble the company’s value from its previous round, and cement its status as one of the breakout startups from India in the past five years.
A Byju’s spokesperson declined to comment.
Mint had first reported in July and September that Byju’s was in talks to raise fresh funds at a valuation of over $2 billion. Since then, investor demand has surged.
Bengaluru-based Byju’s is part of a small but growing bunch of tech start-ups, which have rapidly grown their businesses and consistently attracted blue-chip investors.
In July 2017, Byju’s had raised about $40 million from Tencent, months after raising $30 million from Verlinvest. Since starting out in 2008, Byju’s has raised over $240 million from Tencent, Verlinvest, Chan Zuckerberg Initiative, Sequoia Capital, Lightspeed Venture Partners and Aarin Capital, among others.
In the past three years, Byju’s has exceeded investor expectations. The company, which started out as an offline teaching centre in Bengaluru, launched an app in 2015 to increase its customer base. It currently offers two separate learning apps—its flagship learning app caters to students from Classes VI to XII, while the second targets students of Classes IV and V. The online education startup plans to launch another app for younger students soon.