BYJU’s, a Bengaluru-based edutech giant after raising $460 million, becomes the second most valued startup in India after Paytm. These funds were raised as part of its ongoing Series F funding. Currently, BYJU’s is valued at a whopping $13 billion. The funding round was led by MC Global Edtech Investment Holdings with Facebook co-founder Eduardo Saverin’s B Capital and others as participants. TCDS India LP, XN Exponent Holdings, Tiga Investments, Arison Holdings, Baron Global Advantage Fund, and Baron Emerging Market Fund also participated and together picked a 1.21% stake.
The leading investor, MC Global, invested $225 million for a 1.73% stake in the company. On the other hand, B Capital participated through two entities and invested $77 million for a 0.59% stake. As per reports from the ministry of corporate affairs filings, BYJU’s approved the allotment of 1,40,233 Series F CCPS, compulsory convertible preference shares at a premium of INR 2,37,326 per share, and at face value of INR 10.
This development has come a week after reports were released about BYJU’s plan to raise around $700 million from new and existing investors. Reports also added that the company is currently in talks with the investors and that the round could even grow further than the stated amount.
Last year, BYJU’s doubled its valuation from $6 billion to $12 billion with multiple acquisitions in less than 12 months. The latest round indicates a 116% increase in the company’s valuation from $6 billion at the end of 2019 to $13 billion at present. If the company manages to increase its valuation to $15 billion, it would be a 150% increase.
Increasing User base and Acquisitions
BYJU’S has also seen a sizable increase in its number of users. As per reports, the company added 25 million new students despite the pandemic between March 2020 to November 2020. Thus, it grew its user base to 7 million students, including 4.2 million annual paid subscribers.
The company also relies on big and impactful acquisition to get deeper control of India’s edutech industry. In August 2020, it acquired WhiteHat Jr, a coding for kids’ startup, for $300 million. Currently, the company is said to be in talks to close the deal with test prep giant Aakash Educational Services and Mumbai-based K12 rival Toppr, which has more than 200 physical coaching centres for medical entrance test prep and engineering.
If successful, the acquisition of Aakash would be the biggest in the Indian edutech space and would certainly help BYJU make a mark even on the offline and traditional education ecosystem.