InvestorQ : Is education start-up Byjus going for another round of funding in the near future?
Dilmini Mercia made post

Is education start-up Byjus going for another round of funding in the near future?

Dawn Cherian answered.
1 year ago

If one start up in India has built market cap at a very rapid pace, it is Byjus, which has jumped from $5 billion to $15 billion in less than 2 years, even as millions of start-ups struggle to become unicorns. Behind this aggressive growth in valuation of Byjus lies an extremely aggressive inorganic growth strategy.

An inorganic growth strategy obviously requires mountains of money and Byjus is now back in the fund raising market. Now, India’s largest and most valuable e-learning platform, Byjus, plans to raise up to $700 million from a mix of new and existing investors. This latest round is expected to value Byjus at $15 billion. Now, this is nearly 25% higher than the last round a few months back, which had valued Byjus at $12 billion.

If the valuation of Byjus gets closer to $15 billion then Byjus will be literally breathing down the neck of Paytm which has a valuation of $16 billion. However, Paytm could be profitable much sooner as Byjus will take a much longer time to be able to break even and make profits. Byjus has been one of the big beneficiaries of the lockdown after millions of children were forced to sit and home and learn their courses online.

Byjus is already in talks with Baring Partners, B-Capital and Malaysia’s sovereign wealth fund Khazanah Nasional for the fund raising program that is scheduled in the next few weeks. This round of funding will be used to finance its acquisition of Aakash Educational Services. After Whitehat, Byjus is in talks to acquire other names like Toppr and Scholr, even as Byjus doubled revenues in FY20. Clearly, inorganic appear to be the way ahead for Byjus.