BYJU's Intends To Raise Over $500 Mn At $23 Bn Valuation

Edtech giant BYJU's intends to raise more than $500 million (about Rs 3,900 crore) in less than a week at a valuation of approximately $23 billion. The corporation is looking to use the money for acquisitions in the US market.

According to the sources, the company is in talks with the Sovereign Wealth Funds (SWF) of Abu Dhabi and the Qatar Investment Authority (QIA) about raising between $400 and $500 million and $250 to 350 million, respectively.

One of the sources on the condition of anonymity told PTI that the giant is likely to raise over $500 million in about a week, and the negotiation could close at a valuation of around $23 billion. As of now, BYJU’s version is still awaited.

According to the source, the company is looking forward to investing the fund in the US. It has already acquired US-based edutech Epic for $500 million and coding site Tynker for $200 million.

It is learnt that BYJU'S and US-based edtech company 2U are in active communication. 2U operates platforms, similar to edX, that provide online courses developed by Harvard University, Massachusetts Institute of Technology (MIT), Boston University, etc.

Sources said that in 2021, BYJU'S Great Learning saw a base of overseas students rise by more than 200%. In the fiscal year (FY) 2021, Great Learning surpassed a revenue run rate of $100 million. The company reported booked revenue of Rs 325 crores at the end of FY20, an increase of about 150% from FY19. In FY21, the user base of the company has multiplied tenfold.

BYJU'S is currently raising money again even though Sumeru Ventures and Oxshott have not yet contributed $250 million as part of the $800 million round of funding that was disclosed in March at a valuation of $22 billion.