Edtech Giant BYJU’S Raises $49 Mn From Its Singapore Holding Company

SUMMARY

BYJU’S has received $49.4 Mn of the $160 Mn in this ongoing round

It has earlier raised $800 Mn at $22 Bn valuation from Byju Raveendran, BlackRock, Vitruvian Ventures, among others

The company due to its high cash burning in WhiteHat Jr has witnessed almost a 20X jump in losses to INR 4,588 Cr in FY21

India’s most valued edtech startup BYJU’S is raising $49 Mn from its Singapore parent entity Byju’s Holdings 1 Pte Ltd. As per the latest regulatory filings by General Atlantic-backed BYJU’S, the edtech giant has received $49.4 Mn ( INR 403.8 Cr) from its Singapore holding entity.

The startup has allotted 11,335 Series F Compulsory Convertible Cumulative Preferences at an issue price of INR 3.5 Lakh apiece to Byju’s Holdings 1 Pte Ltd. This is a first tranche of a total of $160 Mn ( INR 1,305 Cr) that the edtech giant’s board has approved to raise money.

Apart from Byju’s Holding 1 Pte Ltd, BYJU’S has another Singapore-based entity – Byju’s Investments Pte. Ltd. The edtech startup has also received close to $232 Mn ( INR 1,894 Cr) earlier this year from Byju’s Investments Pte. Ltd.

The latest development has come on the backdrop of the startup announcing its much awaited FY21 financial results. The company due to its high cash burning in WhiteHat Jr has witnessed almost a 20X jump in losses to INR 4,588 Cr in FY21. The company has reported a consolidated loss of INR 231.6 Cr in FY20.

Byju Raveendran-led edtech startup’s total income declined 3.3% to INR 2,428.3 Cr in FY21 from INR 2,511.7 Cr in the previous year mostly due to a change in the revenue recognition for its streaming services. Earlier, BYJU’S used to calculate its revenue from these streaming services upfront on the commencement of the contract.

The edtech giant’s total expenses rose 144.5% to INR 7,027.4 Cr from INR 2,873 Cr in FY20 on the back of heavy marketing and acquisition costs. The company for marketing had spent INR 2,251 Cr, which comprised 32% of the total expenses BYJU’S witnessed in FY21.

The company has raised a whopping $800 Mn at a valuation of $22 Bn. The round was led by Byju Raveendran himself where he had committed to invest $400 Mn to further increase the stake to 25% in the company. The round saw participation from BlackRock, Vitruvian Ventures, among others. The company is yet to receive money from Sumeru Ventures which also had participated in this $800 Mn round.