Byju’s raises $300 mn; valuation hits $18bn

Byju’s is raising ~2,200 crore ($300 million) as part of a larger round of new investment. This comes at a time when the world’s most valuable edtech decacorn focuses on expanding its business in global markets and aggressively explores merger and acquisition opportunities. According to industry sources, the new funding may value Byju’s at $18 billion, up from a valuation of $16.5 billion in June this year.

Byju’s is raising ~2,200 crore ($300 million) as part of a larger round of new investment. This comes at a time when the world’s most valuable education technology (edtech) decacorn focuses on expanding its business in global markets and aggressively explores merger and acquisition opportunities.

According to industry sources, the new funding may value the Bengalurubased Byju’s at $18 billion, up from a valuation of $16.5 billion in June this year. In June, Byju's became India's most valuable unicorn, with a valuation of $16.5 billion, surpassing financial technology company Paytm's $16-billion valuation for the tentpole position in India’s startup ecosystem.

The company is proposing to allot 77,174 Series F compulsorily convertible preference shares at a face value of ~10 each and at a securities premium of ~2,85,062 to investors, according to regulatory documents sourced by business intelligence platform Tofler. The resolution for this funding was passed on September 27.

It is raising ~2,200 crore funding under private placement from Oxshott Venture Fund, along with participation of Edelweiss Private Investments Trust, Verition Multi-strategy Master Fund, IIFL India Private Equity Fund, XN Exponent Holding, and Marketx Ventures, among others.

Of the ~2,200-crore funding, at least ~1,200 crore will come from Oxshott Venture Fund. “The company proposes to complete the allotment of shares within 30 days from the date of receipt of application money for such shares,” said the company in a document, adding, “The company needs funds to meet the working capital and business expansion plans.”

Byju’s is on an acquisition spree in India and globally as the pandemic has accelerated the adoption of online education. Students and professionals are looking to upgrade their skills, while schools and offices remain shut.

The start-up has now acquired eight companies in India and the US this year and spent more than $2 billion in the past six months on these acquisitions, revealed sources. The inorganic route is likely to help Byju’s dominate the edtech market.

Last month, it acquired Us-based Tynker, a leading K-12 creative coding platform, for $200 million. The acquisition will further step up Byju’s US market expansion.

Some of the other deals include the $1-billion buy of New Delhi-based Aakash Educational Services in April and the $600-million acquisition of Singapore-headquartered Great Learning, a leading global player in professional and higher education.

Last month, it acquired Gradeup (rebranded Byju’s Exam Prep), one of India’s largest online examination preparation platforms.

In July this year, Byju’s acquired Us-based digital reading platform Epic for $500 million.

Byju’s provides learning programmes for students in lower kindergarten, upper kindergarten, grades 1-12 (K-12), and competitive tests like Joint Entrance Examination, National Eligibility-cumentrance Test, and Indian Administrative Service.

Its application (app) has over 100 million registered students and 6.5 million annual paid subscriptions. With an average time of 71 minutes being spent by a student on the app every day from over 1,700 cities, the app is creating a whole new way of learning through visual lessons.