Byju's raises $540 million at estimated valuation of $3.6 billion

Byju’s founder Byju Raveendran

Online education start-up Byju's Monday said it has raised $540 million (Rs 38.65 billion) in funding, led by Naspers with a significant portion also being contributed by the Canada Pension Plan Investment Board (CPPIB).

The new round of funding will drive innovation for tech-enabled learning products and also fuel plans for international market expansion for Byju's, a statement said.

"We are happy to have prominent and long-term partners like Naspers and CPPIB on board with us. This partnership will strengthen our ability to deliver on our vision to build the world's largest education company," Byju's founder and CEO Byju Raveendran said.

He added that while near-term profitability is important for the company, its main focus continues to be on long-term sustainable growth.

While Byju's did not disclose the valuation of the company, industry watchers estimate it to be over $3.6 billion (Rs 25.76 billion).

"The ed-tech industry is undergoing massive shifts, students today want to learn through engaging and interactive methods. We are pioneering 'better learning for tomorrow' with technology as an enabler, and have been working towards making students active learners," he said.

Launched in 2015, Byju's has 30 million students cumulatively learning from its application and over 2 million annual paid subscriptions.

In June this year, Byju's had said it has crossed Rs 1 billion in monthly revenue and had revised its revenue targets for this year to Rs 14 billion.

Last year, Byju's had announced raising an undisclosed amount in funding from China's Tencent Holdings and Belgium-based investment firm Verlinvest. In 2016, it had raised $50 million (about Rs 3.32 billion) from a clutch of investors, led by Chan Zuckerberg Initiative (CZI) and Sequoia Capital.

To date Byju's has raised funds from Naspers, CPPIB, General Atlantic, Chan-Zuckerberg Initiative, Tencent, Sequoia Capital, Sofina, Verlinvest, IFC, Aarin Capital, Times Internet and Lightspeed Venture Partners.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel