UBS Investment Boosts Byju's to India's Most Valuable Startup

Byju’s Achieves Highest Startup Valuation in India

Byju’s, a leading edtech company, has attained the position of India’s most highly valued startup. This follows a recent funding round of approximately $350 million.

Investors in this tranche include UBS Group, Eric Yuan – the founder of Zoom – Blackstone, and several others. The investment has resulted in a post-money valuation of $16.5 billion for the Bangalore-based firm.

Details of the Investment

Recent filings from Byju’s indicate that a diverse group of investors participated in the funding. These include ADQ, the Abu Dhabi government fund, and Phoenix Rising, collectively contributing around $350 million.

This new valuation places Byju’s above Paytm, previously valued at $16 billion, as the leading startup within the Indian ecosystem.

Paytm is currently preparing for a potential public offering, aiming to raise up to $3 billion and achieve a valuation of as much as $30 billion.

Expansion and Future Plans

This latest investment is part of a larger funding round initiated earlier in the year, with Byju’s aiming to secure over $1.5 billion in total.

Other recent investors include B Capital Group and the hedge fund XN. The company’s valuation has seen significant growth, increasing from $5.75 billion in July 2019 to $11 billion late last year.

A portion of the newly acquired capital will be allocated to strategic acquisitions. Earlier this year, Byju’s acquired Aakash, a physical coaching institute, for nearly $1 billion.

Currently, the company is conducting due diligence on Toppr, an online learning platform, and has also explored potential acquisition of U.S.-based Epic.

Byju’s Services and Growth

Byju’s caters to students preparing for undergraduate and graduate courses. In recent years, the company has broadened its offerings to encompass all school levels.

The platform utilizes engaging teaching methods, with tutors employing everyday objects like pizza and cake to explain complex concepts.

The COVID-19 pandemic and the resulting nationwide lockdowns in New Delhi, which led to school closures, significantly accelerated Byju’s growth, alongside other online learning platforms like Unacademy and Vedantu.

User Base and Financial Performance

As of early this year, Byju’s reported a user base exceeding 80 million, with 5.5 million being paying subscribers.

The company is profitable and generated over $100 million in revenue from the U.S. market last year, according to Deborah Quazzo, managing partner of GSV Ventures.

At a UBS event earlier this year, Byju’s executives stated their current revenue run rate is $800 million. They anticipate this figure will reach $1 billion within the next 12 to 15 months.

Furthermore, the company has been actively accelerating its international expansion initiatives in recent months.