The latest round reduced the shareholding of the promoters group, which includes Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran, to 26.09 per cent in the company.
After raising over $1 billion in 2020, edtech decacorn (unicorns valued at $10 billion or above) Byju’s has kicked off its 2021 fundraising. Led by Byju Raveendran, the company has now raised Rs 3,328 crore (around $460 million) in its long ongoing Series F round. Investment firm MC Global Edtech Investments Holdings, which led the round, contributed around half of the amount at approximately $222 million, according to the regulatory filing. Facebook co-founder Eduardo Saverin’s startup fund B Capital also participated through its Asian and global entities apart from other investors including TIGA India, TCDS India, Arison Holdings, XN Exponent Holdings, Baron Emerging Markets Fund and Global Advantage Fund.
Byju’s has approved an allotment of 1,40,233 of Series F Compulsorily Convertible Cumulative Preference Shares (CCCPS) at a face value of Rs 10 each, at a premium of Rs 2,37,326 per share, filings sourced from business intelligence platform Tofler showed. The post-issue stake held by MC Global in the current round stood at 1.73 in exchange for 68,613 CCCPS while B Capital, through its two entities, acquired a 0.59 per cent stake in the company. Saverin’s fund has invested around $76.5 million.
Byju’s didn’t reply to a query seeking comment on the latest round and the company’s valuation.
The latest round reduced the shareholding of the promoters group, which includes Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran, to 26.09 per cent while the non-promoters group had 73.91 per cent holding in the company. Byju’s had last raised $200 million in November 2020 at a valuation of around $12 billion. The latest round has taken Byju’s total fundraising to around $2.5 billion.
Byju’s claimed to have more than 80 million registered students and 5.5 million annual paid subscriptions with an average time of 71 minutes spent by a student on the app every day from over 1,700 cities. In 2019, Byju’s had acquired the US-based maker of educational games Osmo and in 2020, it bought coding startup White Hat Jr in 2020. The company is now reportedly in talks to buy Aakash Educational Services and rival startup Toppr. Its revenue had almost doubled to Rs 2,800 crore in FY20 from Rs 1,430 crore in FY19.
Importantly, 2020 saw significant investments in edtech startups. Led by Byju’s, Unacademy, Toppr, etc., funding was up 300 per cent in 2020 on the back of the pandemic and the following lockdown. The segment managed to win $2.22 billion funding in 2020 up from just $553 million in 2019, according to a report by the Indian Private Equity and Venture Capital Association and PGA Labs. More than a dozen startups were able to benefit from the Covid tailwinds to secure investments and even more had cropped up across sub-segments to ride the digital education wave this year. The education market, as a whole, was worth $117 billion in India with around 360 million ‘learners’ with primary education comprising 66 per cent of the spend followed by 27 per cent coming from secondary education.