Byju's Valuation: Indian Edtech Giant Reaches $18 Billion

Byju’s Secures $300 Million in New Funding

Byju’s has recently obtained approximately $300 million in a new investment round. This funding will be utilized to facilitate the expansion of the Indian edtech company’s global operations. Furthermore, the company is actively investigating potential merger and acquisition possibilities.

Valuation Increase

According to a filing provided to TechCrunch by Tofler, this latest investment establishes the startup’s valuation at $18 billion. This represents an increase from the $16.5 billion valuation recorded in June of this year. Previously, Byju’s had already exceeded fintech leader Paytm in terms of valuation within India’s startup landscape.

Investment Participants

Oxshott Capital Partners spearheaded the current investment tranche. Additional participation came from XN Exponent, Edelweiss, Verition Master Fund, IIFL, and Time Capital Advisors.

Future Valuation Projections

Sources indicate that this new investment is part of a larger financing round. This round is anticipated to elevate Byju’s valuation beyond the $21 billion mark.

A representative for Byju’s declined to provide a statement on Monday.

Potential IPO

This funding arrives as Byju’s is also in discussions with financial institutions regarding a potential Initial Public Offering (IPO) sometime in the coming year. Estimates from some banking entities suggest a valuation of up to $50 billion should the company proceed with an IPO next year, as reported by TechCrunch in August.

Byju Raveendran, founder and CEO of Byju’s, confirmed last month that an IPO was under consideration.

Strategic Acquisitions

Since the onset of the pandemic, Byju’s has raised over $1.8 billion. A substantial portion of these funds has been allocated to strategic acquisitions. Earlier this year, the company acquired Aakash, a prominent coaching institute with over 200 centers, for close to $1 billion.

Other acquisitions include Great Learning and U.S.-based Epic, totaling over $1 billion in cash and stock transactions. Just last month, the startup announced the acquisition of Tynker, a kids coding platform, for $200 million.

Continued M&A Activity

Raveendran stated last month that Byju’s remains actively engaged in exploring further merger and acquisition opportunities. These acquisitions are intended to broaden the company’s service offerings and enhance its access to international markets.

Expanding Educational Scope

Byju’s currently prepares students for undergraduate and graduate-level studies. In recent years, the company has broadened its curriculum to encompass students at all school levels.

The Byju’s app utilizes relatable, real-world examples – like pizza and cake – to help tutors explain complex concepts.

Pandemic-Driven Growth

The COVID-19 pandemic, which led to nationwide lockdowns and school closures in New Delhi, significantly accelerated Byju’s growth. This growth was mirrored by other online learning platforms, including Unacademy and Vedantu.