BYJU’S likely to raise over $500M at $23B valuation
- ByStartupStory | September 5, 2022
Banglore-based ed-tech gaint BYJU’S is expected to raise more than $500 million (about Rs 3,900 crore) in less than a week at a valuation of approximately $23 billion, mentioned by the sources privy to the development.
They further mentioned that the corporation intends to utilise the funds for US acquisitions.
According to the sources, the company is in talks with the Sovereign Wealth Funds (SWF) of Abu Dhabi and the Qatar Investment Authority (QIA) about raising between $400 and $500 million and $250 to 350 million, respectively.
“BYJU’S is in an advanced stage of discussion with some investors. The company is likely to raise over $500 million in about a week. The transaction is expected to be closed at a valuation of around $23 billion,” said an unknown source.
The funding is part of the company’s strategy, according to the source, to utilize the fund for inorganic expansion, particularly in the US. Earlier, the company had already acquired coding site Tynker for $200 million and US-based reading platform Epic for $500 million.
Byju’s other overseas acquisitions include Singapore-based Great Learning for around $200 million and Austria’s mathematics operator GeoGebdra for approximately $100 million.
The edtech gaint was also considering on acquiring Chegg. But a firm insider claims that there aren’t any ongoing discussions with Chegg.
BYJU’S fresh fundraise comes even though the company is yet to get $250 million committed by Sumeru Ventures and Oxshott as part of the $800 million round of funding announced in March at a valuation of $22 billion.
According to the sources, the company has maintained its momentum, and its consolidated business has been fueled by inorganic expansion, particularly Aakash and Great Learning.
They also added“BYJU’S Great Learning has achieved over 200% growth in global learner base last year. Great Learning has crossed the revenue run rate of $100 million in the financial year (FY) 2021. The company had concluded FY20 with booked revenue of Rs 325 crores, with a growth of close to 150% from FY19. The company’s user base has also increased ten-fold in FY21.”
Follow Startup Story
Related Posts
