Byju’s valuation tops $15 billion after over $1-billion funding


Mumbai: Byju’s has raised over $1 billion from investors led by Baron Funds, Facebook co-founder Eduardo Saverin’s B Capital Group, and US-based investment hedge fund XN Exponent Holding, regulatory filings with the Ministry of Corporate Affairs—sourced from business intelligence platform Tofler—showed.

This round—a continuation of its capital-raising to fund
the recent acquisition of Aakash Educational Services Ltd.—takes its total fundraising from the latest round to $1.5 billion, which the decacorn is expected to use for inorganic growth (acquisitions).

The latest fundraising values the company at $15 billion, sources said.

The company raised a total of Rs 11,364 crore ($1.51 billion at the latest conversion rate) in three tranches of Series F starting with Rs 912 crore from Black Rock and T. Rowe Price in December 2020, the filings showed.

According to the filings, existing investors such as Silver Lake Management, Owl Ventures, T Rowe Price, Disruptive Technology Solutions, Footpath Ventures, Prudential Assurance Company, Olay and Investments, and GSV have also participated in the latest round, in which the company mopped up Rs 7,124 crore.

Last month, the Bengaluru-based company
raised $460 million (Rs 3,328 crore) from investors led by MC Global Edtech Investments Holdings which brought in around $222 million, while B Capital invested around $75 million through its Asian and global entities.

ET reported about the ongoing fundraise on March 25.

ETtech

The latest filing showed that Byju’s has allotted 3,00,193 Series F compulsory convertible preference shares of face value of Rs 10 each at a premium of Rs 2,37,326.33 per share.

Byju’s said last week it was acquiring Aakash Educational Services in a cash-and-stock deal estimated at $950 million, sealing its largest buyout. The buyout is also among the largest acquisitions by an Indian startup — bigger than Snapdeal’s purchase of Freecharge for $400 million in 2015 and Flipkart’s acquisition of Myntra for an estimated $330 million in 2014.

India’s most-valued edtech startup
snagged coding tutor WhiteHatJr in a $300-million deal amid the pandemic last year.

Byju’s
is also finalising the acquisition of Toppr, an online learning firm, for $150 million, which it may finance through internal cash reserves.

“Other acquisitions are smaller in size and we have cash in hand. We will see how the final deal contours work out.” the startup’s founder, Byju Raveendran, had told ET in an interview last week. “This acquisition (AESL) will help Byju’s cross the $1 billion mark in revenues for the next financial year. We are looking at closing the next year at $1.2-1.3 billion in revenues.”

The edtech company said its current revenue run rate was around $800 million.

Following the Byju’s-Aakash deal and fundraising, Raveendran said he along with wife Divya Gokulnath and brother Riju Raveendran will own a total of 25.12% stake in the startup, as per the regulatory filings.

Some of the startup’s early backers include Lightspeed Venture Partners, Qatar Investment Authority, Owl Ventures, General Atlantic, Tiger Global, Tencent, Verlinvest and Sofina.

Byju’s has said that the Covid-19 pandemic drove strong growth for its business, with 20 million new users signing up to use the platform four months after the outbreak-induced lockdowns. It had taken the company four years to add its first 40 million users.



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