BYJU’S Secures $700 Million in Latest Funding Round
Written by Sanjay Kumar
According to a report by Financial Express, Byju’s, the most valuable ed-tech startup in the world, has raised $700 million in two separate deals involving equity and convertible notes.
The much-anticipated capital infusion could help the company overcome potential debt issues. The fresh funding round was primarily led by two sovereign wealth funds based in West Asia and large private equity firms. Nevertheless, a few existing investors also joined in the round.
The company was valued at $22 billion in its last funding round, where it raised $250 million from existing investors and the Qatar Investment Authority in October.
BYJU’S
Educational technology company
- Founders: Byju Raveendran, Divya Gokulnath
- Subsidiaries: Byju’s Exam Prep, WhiteHat Education Technology, MORE
- Revenue: 2,280 crores INR (US$290 million, 2021)
- Founded: 2011
- Type of business: Privately held company
- Headquarters: Bengaluru, Karnataka, India
Byju’s aims to become profitable by the end of April. The company implemented a plan to retrench 2,500 employees and hire 10,000 teachers for India and overseas. However, the company faced a loss of INR 4,588 crore for the fiscal year ended March 2021, which was 19 times higher than the previous year. Revenues in FY 2021 dropped to INR 2,428 crore from INR 2,511 crore in FY20, and losses widened from INR 231.69 crore in FY20 to INR 4,588 crore in FY21.
However, Byju’s revenue soared four-fold to INR 10,000 crore in the fiscal year ending March 2022. The company did not reveal its profit or loss numbers for that year. Meanwhile, the company is in talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants. Founder Byju Raveendran, a former educator himself and the son of teachers, is working on a turnaround plan for the company, pledging to make it profitable this year.
About Byju’s business model
Byju’s is an Indian ed-tech company that offers online learning programs for students from kindergarten to 12th grade. Their business model is centered around the idea of personalized learning, where students can learn at their own pace and style through engaging video lectures and interactive quizzes. Byju’s offers both free and paid versions of their app, with the paid version providing access to additional content and features.
Byju’s also partners with schools and universities to offer their programs to a wider audience. Their revenue model is based on subscription fees, with customers paying a monthly or annual fee to access the content. Byju’s has been successful in scaling their business rapidly and has attracted significant investment from major global investors, making it the most valuable edtech startup in the world.
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