Exclusive: Edtech Decacorn BYJU’s Is Raising INR 2,200 Cr In Funding

Byju Raveendran-led edtech decacorn BYJU’s is raising INR 2,200 Cr ($296 Mn) in a funding round led by Oxshott Venture Fund. 

According to the company’s RoC filings, Edelweiss, Veriton Fund, XN Exponent Holdings, and MarketX Ventures will also be participating in this round of funding — which appears to be part of its ongoing Series F round. 

BYJU’s will be allotting a total of 77,174 Series F compulsory convertible cumulative preference shares (CCPS) at a premium price of INR 2,85,062. As per the filings, the new round will be led by Oxshott Venture Fund who will pump in INR 1,200 Cr for 42,905 Series F CCPS. While, Edelweiss will be infusing around INR 345 Cr in Bengaluru-based edtech giant, and IIFL will be investing INR 111 Cr.  

Verition Fund, a multi-manager hedge fund will be investing INR 147 Cr. XN Exponent Holdings, another hedge fund will pump in INR 150 Cr and MarketX Ventures will invest INR 144 Cr. 

The development comes a few weeks after BYJU’s mopped up $150 Mn in an investment round led by Asmaan Ventures and ARK Ncore at $16.8 Bn valuation. BYJU’s had allotted 38,705 Series F preference shares to Asmaan Ventures and 6,045 Series F preference shares (each share costing INR 2,85,072) to Mirae Asset and ARK Ncore.

Back then, sources informed Inc42 that the $150 Mn infusion is part of a $1 Bn round that BYJU’s has been in talks for some months now. The fresh infusion of $296 Mn looks like the second tranche of this $1 Bn round.

BYJU’s Acquisition Spree Continues 

The investment also comes on the heels of BYJU’s acquiring US-based coding startup Tynker for about $200 Mn. The edtech decacorn has already spent $2.6 Bn for acquiring companies in 2021. Overall, it has acquired nine businesses this year. 

BYJU’s 2021 Acquisition Spree: 

• Sept: Acquired US-based coding startup Tynker for $200 Mn
• Sept: Acquired exam-preparing platform GradeUp
• August: Acquired AR-startup Whodat 
• July: In a bid to strengthen its offerings in the professional and higher education segment, BYJU’s acquired Great Learning for $600 Mn
• July: Acquired US-based digital reading platform Epic Games for $500 Mn
• July: Acquired Mumbai-based Toppr for around $150 Mn
• May: Acquired on-demand tutoring app HashLearn for an undisclosed amount
• April: Acquired Aakash Educational Services for close to $1 Bn
• Feb: Acquired doubt solving platform Scholr for an undisclosed amount

The Upcoming IPO

The edtech giant is also exploring an IPO which could value the company at around $40 Bn-$45 Bn. According to an Inc42 source, the edtech decacorn plans to list itself on the domestic market in the next 8-10 months. 

The size of BYJU’s IPO is yet to be finalised as various aspects of the initial public offering are being deliberated upon, the source had informed Inc42. BYJU’s will be joining the likes of cab-hailing aggregator Ola, food delivery aggregator Swiggy, fintech platform Pine Labs, among others — who are also exploring IPO. 

In the last 18 months, the Indian edtech sector has witnessed massive growth. With a series of nationwide lockdowns and schools and colleges being shut to prevent the spread of the contentious virus, edtech startups witnessed a significant increase in their user base. 

The investor sentiment towards the sector has also witnessed positive growth. According to Inc42 Plus analysis, between January to September (25th) 2021 — about $1.4 Bn was invested in edtech startups across 44 deals. 

Of the five edtech unicorns in the Indian startup ecosystem, four entered the prestigious club post the pandemic.

The year 2021 has seen three edtech startups entering the unicorn club, with the latest being Vedantu — which raised $100 Mn from Singapore-based, Temasek-backed private equity firm ABC World Asia with participation from existing investors Coatue Management, Tiger Global, GGV Capital, and WestBridge. 

This story first appeared on Inc42 on 4th October at 00:18 AM IST.