Byju’s value at $5.4bn via new $25m round

BENGALURU: Education technology platform Byju’s valuation has surged to over Rs 37,000 crore, or around $5.4 billion, after a fresh funding of $25 million from existing backer General Atlantic, making it the fourth most-valued private internet company in India.

The fresh tranche will push the value of promoter group led by Byju Raveendran’s 36% shareholding in the Bengaluru-based company to Rs 13,267 crore, or $1.9 billion, according to sources and filings with the ministry of corporate affairs (MCA).

The deal would make Raveendran, who holds the stake with his wife Divya Gokulnath and brother Riju, one of the wealthiest new economy entrepreneurs. It is also one of the only major venture capital-backed companies where founders still hold over 30% stake.

Byju’s valuation jump comes about three months after the seven-year old company was valued at $3.6 billion in December when it raised capital from Naspers Ventures, the investment arm of the South African media giant, and Canadian pension fund CPPIB. The company was valued at $1 billion till early last year.

Calls made to Raveendran did not elicit a response and the company spokesperson declined to comment.

Now 37-year-old, Byju had started the company as an offline coaching class for Common Admission Test (CAT) to enter IIMs back in 2007. Then several of his students joined him in 2009, and he registered his company as Think & Learn Private Limited in 2011. The company tried out tablet-based format, but tasted major success after launching a mobile application in 2015. Since then, it has attracted investments from Facebook CEO Mark Zuckerberg’s foundation and Chinese internet giant Tencent, among others.

“I think this is a very positive development for the ecosystem and showcases that investors are valuing the opportunity in the Indian ed-tech. Byju’s has also built a good brand along with strong revenue traction over the years,” said Sameer Brij Verma, MD at venture firm Nexus, where he led the investment in ed-tech player Unacademy.

Byju’s has previously said the company has been growing at 100% for the last three years and is on target to touch Rs 1,400 crore in revenue in the year ending March 2019.

In December, the company had 30 million registered students and 2 million annual paid subscribers.

Byju’s has also said that it plans to double its workforce this year by adding 3,000-3,500 new employees. All of this comes on the back of Byju’s $120 million acquisition of the USbased Osmo in January, which the company will use to enter the kids’ segment by the middle of this year, with a stand-alone app. Byju has also outlined an investment plan in the range of $50-100 million for overseas expansion in English-speaking markets like the US, the UK, and others.