The round also saw participation from institutional investors that included Sumeru Ventures, Vitruvian Partners, and BlackRock
With this funding round, the edtech giant is now valued at $22 Bn
With this round, Byju will hold a 25% stake in the company
The edtech decacorn, BYJU’S is witnessing a major churn as it ramps up efforts to get listed.
In a major announcement, BYJU’S has raised $800 Mn in a strategic funding round led by CEO and founder Byju Raveendran, Sumeru Ventures, Vitruvian Partners, and BlackRock.
According to an Inc42 source, the edtech giant has raised this round of funding at a $22 Bn valuation.
Byju has invested $400 Mn as part of this round. With this round, Byju will hold 25% in the company, while cofounder Divya Gokulnath and management will hold a 4% stake.
The funding will be used to accelerate the fruition of the startup’s long term goals.
BYJU’S CEO and founder, Byju Raveendran, said, “We continue to witness accelerated growth in India and international markets through both organic and inorganic routes. Our sustained focus is on achieving our long-term goals around creating life-long value for our learners. For that, we are imagining and reimagining the way students will learn, unlearn and relearn in the future. Our aspiration is to build something that will last for decades.”
Raveendran also said that the company would continue to invest in multiple learning models to improve its offerings for students across the globe.
Vitruvian’s Managing Partner, Mike Risman, also said, “As a leader in the edtech space, BYJU’S strong growth and expansion in national and international markets has been very promising. We look forward to working with BYJU’S as it builds on and accelerates its compelling growth trajectory.”
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The startup has a presence in 7 countries and has more than 150 Mn students on its platform. It also plans to expand to other geographies in the near future.
BYJU’S also claims to have an annual subscription renewal rate of 86% with its flagship app, BYJU’S – The Learning App, having 7.5 Mn annual paid subscriptions.
The app has students from more than 1,700 cities, spending an average time of 71 minutes on the app every day.
Founded in 2006 by Byju Raveendran and Divya Gokulnath as a CAT coaching centre, the edtech decacorn has grown by leaps and bounds over the years. From a single room, BYJU’S has grown into India’s most valued edtech unicorn valued at over $21 Bn valuation.
The edtech decacorn has so far seen robust growth in the past, raising close to $1.9 Bn last year alone. Add to this, it has gone on an aggressive acquisition campaign, snapping up other leading edtech platforms and offline players including Tynker, WhiteHat Jr, Aakash, Great, Gradeup, among others. The edtech giant had nearly spent $2.6 Bn for acquiring around 10 startups.
The edtech sector saw a sudden boom in fortunes last year, largely backed by the pandemic-induced demand. This led to the widening of the market and a slew of players in the sector. This is also reflected in the overall data related to the sector. According to an Inc42 Plus report, India’s edtech market opportunity is poised to grow to $10.4 Bn in 2025, at a CAGR of 39%.
This announcement also comes as the startup speeds up its efforts to get listed. The company is likely to take the Special-Purpose Acquisition Company (SPAC) route to raise $4 Bn via its listing and is reportedly in talks with 4 SPACs to get listed by end of this year.
With this round, Byju becomes the third Indian founder to invest in his own startup. Earlier in 2019, Ritesh Agarwal had also infused $693 Mn in funding in his own hospitality startup, OYO. In February 2022, former Flipkart founder Binny Bansal had also led a round of his own startup xto10x. He along with 28 other individual investors had invested $25 Mn in the SaaS startup.