EdTech Giant Builds Up War Chest Ahead of Aakash IPO
In a significant development, Byju’s, the Indian edtech giant, has raised $250 million in fresh funding and is close to securing an additional $700 million. This comes as the company builds up its war chest ahead of the highly anticipated initial public offering (IPO) of its subsidiary, Aakash.
Structured Instruments Deal with Davidson Kempner
According to two people familiar with the matter, who spoke to TechCrunch on condition of anonymity, Byju’s has received $250 million in funding from the New York-headquartered investment firm, Davidson Kempner. This deal was struck via structured instruments, which are a type of financial instrument that allows investors to receive a fixed rate of return over a specified period.
Sovereign Fund Investment
The Bengaluru-headquartered startup is also finalizing the remainder of the capital from a sovereign fund. The people said that this investment will come in as part of a convertible note, which caps Byju’s valuation at $22 billion. This deal is expected to be completed within two weeks.
Valuation Remains Unchanged
It’s worth noting that Byju’s has maintained its $22 billion valuation throughout the past year, even as numerous high-profile startups globally have had severe corrections in their value.
Aakash IPO Plans
Byju’s is currently in advanced discussions with bankers including Citi and Goldman Sachs to go ahead with the IPO of Aakash. The startup has received approval from its board of directors to proceed with the listing, and it’s gearing up to file the paperwork soon.
Background on Byju’s
Byju’s is one of India’s most valuable startups, with a valuation of over $22 billion. The company prepares students pursuing undergraduate and graduate-level courses, and in recent years has expanded its offerings to serve all school-going students. Byju’s has amassed 150 million users who use its learning app, while hundreds of thousands of students visit the firm’s brick-and-mortar centers.
EdTech Boom
The edtech industry has experienced a significant boom in recent times, with numerous startups receiving funding from investors. However, the Indian startup ecosystem is currently reeling from a funding crunch amid a weakening global economy.
Byju’s Acquisitions
Byju’s has spent over $2.5 billion in the past two and a half years to acquire startups globally as it expanded its offerings in several international markets. The company generated a gross revenue of $1.258 billion (unaudited) in the financial year that ended in March last year, while between April and July, the startup logged revenue of $570 million.
Backers
Byju’s counts Prosus Ventures, Chan Zuckerberg Initiative, Sequoia Capital India, Silver Lake, Owl Ventures, UBS, and Blackrock among its backers. The company has raised over $6 billion to date.
Related Stories
- Duolingo Sees 216% Spike in US Users Learning Chinese Amid TikTok Ban and Move to Red
- Tesla to Split $100M Award for Electric Truck Charging Corridor in Illinois
- Bluesky is Getting its Own Photo-Sharing App, Flashes
About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. He also reports on global tech firms’ India play. Before joining TechCrunch in 2019, Singh wrote for about a dozen publications, including CNBC and VentureBeat. He graduated in Computer Science and Engineering in 2015.
Stay Up-to-Date with the Latest News
Subscribe to TechCrunch Daily News for the industry’s biggest tech news every weekday and Sunday. You can also follow TechCrunch on social media platforms like Twitter, Facebook, and LinkedIn.
TechCrunch Daily News
Stay ahead of the curve with the latest news from the world of technology and startups.
- Trading Platform eToro Said to Be Eyeing $5B US IPO in 2025
- Anduril to Build Its Billion-Dollar Weapons Megafactory in Ohio
- Netradyne Snags $90M at $1.25B Valuation to Expand Smart Dashcams for Commercial Fleets
Stay Connected with TechCrunch
Follow us on social media platforms like Twitter, Facebook, and LinkedIn to stay up-to-date with the latest news and developments in the world of technology and startups.
Byju’s has raised $250 million in fresh funding and is close to securing an additional $700 million. This comes as the company builds up its war chest ahead of the highly anticipated initial public offering (IPO) of its subsidiary, Aakash.
The Bengaluru-headquartered startup is also finalizing the remainder of the capital from a sovereign fund. The people said that this investment will come in as part of a convertible note, which caps Byju’s valuation at $22 billion.
Byju’s has spent over $2.5 billion in the past two and a half years to acquire startups globally as it expanded its offerings in several international markets. The company generated a gross revenue of $1.258 billion (unaudited) in the financial year that ended in March last year, while between April and July, the startup logged revenue of $570 million.
Byju’s counts Prosus Ventures, Chan Zuckerberg Initiative, Sequoia Capital India, Silver Lake, Owl Ventures, UBS, and Blackrock among its backers. The company has raised over $6 billion to date.
Stay ahead of the curve with the latest news from the world of technology and startups.
Follow us on social media platforms like Twitter, Facebook, and LinkedIn to stay up-to-date with the latest news and developments in the world of technology and startups.
