informed of citing people familiar with the matter on Thursday.
The Bengaluru-headquartered edtech startup could kick off pre-IPO fundraising in a few weeks at a valuation of around $21 billion, said one of the people, who asked not to be named because the details are private. Fundraising is likely to be split roughly equally between equity and debt.
Byju under the leadership of former teacher byju ravindranIt then aims to file its initial IPO documents in the second quarter of next year, two people said. It previously saw a timeline of 12 to 24 months. People said the startup and its bankers are discussing a valuation of $40 billion to $50 billion, although the final determination will depend on financial results and investor demand.
Banks involved in the talks include Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co., one person said. The same banks are involved in the current fundraising.
Byju’s, Morgan Stanley, JP Morgan and Citi declined to comment.
Two people said investment bankers have also offered options such as IPOs in the US or mergers with special purpose acquisition companies (SPACs), but those options are less likely than listing in India.
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Byju’s economic condition
EdTech Decacorn
Its consolidated loss widened to Rs 262 crore Its revenue from operations grew by 82.31% in 2019-20 from Rs 8.9 crore in the previous fiscal as well.
Operating revenue stood at Rs 2,381 crore in FY20, up from Rs 1,306 crore in FY19, while its annual expenditure grew 119% to Rs 3,022 crore from Rs 1,377 crore, a regulatory filing by the company showed.
The company made almost three times more revenue from sales of educational tablets and SD cards than from sales of reference books. It sold equipment worth Rs 1,676 crore and books worth Rs 561 crore in FY15.
acquisition spree
Byju’s has largely fueled its growth through the acquisition route,
spend up to $2 billion To acquire four companies in the last six months.
In July, I.T.
announced Acquisition of professional and higher education platform Great Learning in a $600 million cash-and-stock deal and Toppr for $150 million. In April, I.T.
acquired Aakash Educational Services for $1 billion, which was said to be the costliest acquisition in India’s edtech industry.
Byju’s latest acquisition is Gradeup, an online exam preparation startup that will now be rebranded as BYJU’s Exam Prep.
The company has recently
Expansion Entered overseas markets through its ‘Future School’ offering, which has clients in the US, UK, Brazil, Indonesia and Mexico.
Valuations and Investors
After this the price of Byju’s came to $ 16.5 billion.
raising about $150 million from UBS Group AG, which puts it ahead of Paytm, which
have filed their initial documents What could be India’s biggest IPO of $2.2 billion ever.
Online education startup, formally called Think and Learn Pvt. Ltd. has major global investors including Chan-Zuckerberg Initiative, Naspers Ltd., Tiger Global Management and private equity giant Silver Lake Management.
According to Bloomberg, the company added 45 million students to its platform since the peak of the pandemic in India last year and said it had over 100 million users on the app in July. It has some 6.5 million paid subscribers and has an annual renewal rate of 86%.