Byju’s valuation may hit $3.5 bn in new fundraise

Online tutoring firm could be India’s fourth most valuable startup

BENGALURU: 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 boosts its valuation far higher than originally anticipated.

Raising funds at this valuation will make Byju’s India’s fourth most valuable start-up, behind digital payments firm Paytm, cab-hailing service Ola and budget hotel chain Oyo.

In its latest round, which is on the verge of closing, Byju’s is set to raise $200-300 million in primary and secondary capital from new investors such as private equity giant General Atlantic, the people cited 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. could not immediately ascertain the valuation of the secondary deal.

If the fundraising closes at a valuation of $3.5 billion, it would more than triple the company’s value from its previous round and cement its status as one of the breakout start-ups from India.

A Byju’s spokesperson declined to comment.

had first reported in July and September that Byju’s was in talks to raise fresh funds at a valuation of over $2 billion.

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Some existing investors such as Sequoia Capital may partially or fully exit the firm after the secondary transaction

Heavy interest from late-stage venture and private equity investors is likely to push up Byju’s valuation much higher than expected

Since then, investor demand has surged.

Byju’s is part of a small but growing number of start-ups that have rapidly grown their businesses and consistently attracted blue-chip investors.

In July 2017, Byju’s raised about $40 million from Tencent, months after raising $30 million from Verlinvest.

Since starting out in 2008, the start-up has raised over $240 million from Tencent, Verlinvest, Chan Zuckerberg Initiative, Sequoia Capital and Lightspeed Venture Partners, 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 user base. It currently offers two apps—its flagship app caters to students from Classes VI to XII, while the second targets students of Classes IV and V.