SUMMARY
BYJU’S had spent approximately $1 Bn for acquiring Aakash last year
BYJU’S had raised $800 Mn in a strategic funding round in March
A person requesting anonymity also talked about the possibility of BYJU’S completely absorbing WhiteHat Jr in the next few months
Bengaluru-based edtech giant BYJU’S said that it has received a majority of the $800 Mn funds that it had announced in March this year and has also completed due payment pending for the acquisition of Aakash Educational Services.
BYJU’S had spent approximately $1 Bn for acquiring Aakash last year. However, the startup was delaying payments while there were reports of funding crunch at BYJU’S and its cost-cut measures became clearer with multiple sessions of layoff.
In a statement on Monday (July 4), a spokesperson at BYJU’S said, “Our payments to Aakash are closed and the audited financial results are going to be announced in the next 10 days.”
“Our fundraising efforts are on track and the majority of the USD 800 mn has been already received. The balance is also expected soon,” added the spokesperson in its statement.
BYJU’S raised $800 Mn in a strategic funding round in March which was led by the startup’s CEO and founder Byju Raveendran, Sumeru Ventures, Vitruvian Partners, and BlackRock.
Raveendran had invested $400 Mn in this round and was expected to hold 25% in the company, while his cofounder Divya Gokulnath and the management would have a 4% stake.
According to an Inc42 source, the funds were raised at a $22 Bn valuation.
However, difficult days are visible in the edtech ecosystem for quite some time. From layoffs, cutbacks, and restructuring to even going bust, edtech startups have had a rollercoaster ride in the last few months.
Inc42 exclusively reported last week about BYJU’S owned WhiteHat Jr laying off around 300 employees in its latest attempt to cut costs. A person requesting anonymity also talked about the possibility of BYJU’S completely absorbing WhiteHat Jr in the next few months as the former has exhausted its capital and was unable to run its operations.
Earlier in May, over 800 full-time employees at WhiteHat Jr had resigned because they were asked to work from the office. However, Inc42 had come to know that it was also the company’s attempt to cut costs.
Talking about the recent layoffs, BYJU’S spokesperson said in its latest statement, “In order to reduce redundancies across our organization after multiple acquisitions, we had to let go of nearly one percent of our 50,000+ strong workforce. This retrenchment was a result of a strategic decision to improve business efficiencies throughout BYJU’S and its group companies,” the spokesperson added.
However, the spokesperson also added, “BYJU’S remains a net hirer… BYJU’S continues to hire across levels for various businesses, departments and functions.”
Meanwhile, its major competitors including Vedantu, Unacademy have also been on a layoff spree.
