BYJU’S Hits $5 Bn Valuation: Kicks Off Fresh Funding Round With $25 Mn From General Atlantic

In less than 10 days after private equity major General Atlantic and Chinese media giant Tencent invested up to $11.43 Mn in edtech unicorn BYJU’S, the duo have come together again to invest  in the company.

However, Inc42 sources familiar with the development said that the General Atlantic has invested in the company’s fresh Series G round while Tencent has been given shares under pro-rata allotment. Also, the investment has been done at a post-money valuation of $5 Bn. At the same time, the use case of funding continues to be expansion while also using funds towards product development.

According to the Ministry of Corporate Affairs filings accessed by Inc42, here’s the breakdown of the $31 Mn (INR 214 Cr) new infusions:

• General Atlantic has picked up 15,187 compulsorily convertible cumulative preference shares (CCCPS) at a premium of INR 1,14,060 per share for $25 Mn (INR 173.23 Cr)
• Tencent via Proxima Beta Pte Ltd has been issued 5,023 compulsorily convertible cumulative preference shares (CCCPS) at a premium of INR 82,882 per share for $6 Mn (INR 41.63 Cr)

The company’s filings showed that with this fresh funding, General Atlantic has increased its stake in the company to 3.4%. The investment was first tipped off by data intelligence platform paper.vc.

In December 2018, when the company closed a $540 Mn Series F round from Naspers, Canada’s Pension Plan Investment Board (CPPIB) and Naspers, it was valued at $4 Bn. At the time, media reports citing sources said that Sequoia Capital has sold its 7% of its stake in BYJU’S for $185 Mn – $190 Mn (INR 1,321 Cr – INR 1,357 Cr).

It has invested $50 Mn (INR 356.7 Cr) in the company so far and will continue to be the major investor with a stake of 13-15%, second only to the founders, who control 38%.

The company was founded in 2008 by Divya Gokulnath and Byju Raveendran. The platform offers a learning app, which was launched in 2015 and has learning programmes for students in classes IV-XII along with courses to help students prepare for competitive exams like JEE, NEET, CAT, IAS, GRE, and GMAT.

In January, BYJU’S acquired US-based learning platform Osmo for $120 Mn (INR 854 Cr) as it looks to expand internationally. Post-acquisition, Osmo’s team based in Silicon Valley will continue to operate independently. In a media statement, BYJU’S said it wants to tap Osmo’s physical-to-digital technology and content to expand its current offerings.

The company reported its revenues for the financial year 2017-18 at $69.4 Mn (INR 490 Cr), a 97 % jump since the last financial year. It is looking to achieve a revenue target of (INR 1400 Cr) this financial year.

Inc42 in its Annual Tech Startup Funding Report 2018 said that edtech startups raised $695 Mn in 56 funding deals for the year, with BYJU’s  being the highest fund grosser. As BYJU’S changes the fate of edtech industry, it becomes one of the biggest funded and valued Indian startup.