Byju's looking to raise over $500 million

5 Sep 2022 , 08:50 AM

Byju’s, a prominent player in edtech, is expected to raise more than $500 million (about Rs 3,900 crore) at a $23 billion value, in approximately a week, according to persons familiar with the situation.

The corporation intends to utilize the funds for US acquisitions, they continued. According to the sources, the business is in talks for funding between $400 and $500 million and $250 to 350 million, respectively, with the Sovereign Wealth Funds (SWF) of Abu Dhabi and the Qatar Investment Authority (QIA).

“With a few investors, Byju’s is at an advanced level of conversation. Within a week, the business should raise more than $500 million. The deal is anticipated to conclude at a value of about $23 billion “One of the individuals, who wished to remain anonymous, told PTI.

Byju’s chose not to comment on the situation. The money is part of the company’s strategy, according to the source, to use the capital for inorganic development, particularly in the US.

The business has previously paid $500 million for the US-based reading platform Epic and $200 million for the online learning platform Tynker. Other foreign purchases made by Byju include the math operator GeoGebdra in Austria for around $100 million and Singapore’s Great Learning for about $200 million.

According to information obtained, Byju’s and the US-based edtech company 2U are in active communication. 2U operates platforms like edX, which provide online courses developed by Harvard University, Massachusetts Institute of Technology (MIT), Boston University, etc.

The edtech company was also considering buying Chegg. But a corporate insider claims that there isn’t currently a conversation going on with Chegg. As part of the $800 million round of fundraising announced in March at a valuation of $22 billion, the Byju’s is still waiting to get a $250 million commitment from Sumeru Ventures and Oxshott.

According to the sources, the corporation has maintained its pace, and inorganic development, particularly that of Aakash and Great Learning, has been supporting its consolidated operations.

“At Byju’s Great Learning, the number of international students increased by more than 200 percent in 2021. Great Learning attained its $100 million revenue run rate in the fiscal year (FY) 2021. “The company reported recorded sales of Rs 325 crores at the end of FY20, up over 150% from FY19. The company’s user base expanded ten-fold in FY21, they added.

The average renewal or retention rate for Byju’s, which claims to have 7.5 million paying clients on its platform and is present in 120 countries, is 86% annually.

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