With the recent $200mn investment from Tiger Global Management, Byju’s valuation now stands at $8bn. Although Byju’s has confirmed on the transaction but declined to comment on specific details of the same.
As per a media report, two sources briefed on the developments, mentioned that Tiger Global, being one of the most influential investors in the Indian startup ecosystem, was in talks to invest in Byju’s for the past few months. Sources also indicated that secondary transactions, estimated at $100-$200 million, are also anticipated that will provide exits to some of the eight-year-old company’s early backers.
“We are happy to partner with a strong investor like Tiger Global Management. They share our sense of purpose and this partnership will advance our long term vision of creating an impact by changing the way students learn. This partnership is both a validation of the impact created by us so far and a vote of confidence for our long term vision,” Raveendran said in a statement to the media.
Byju’s is the only profitable consumer internet unicorn to have emerged from India, and was valued at $5.5-$5.7 billion, post its last funding round in July last year, is also likely to raise, through the course of 2020. The company is in talks with multiple investors, including from certain US-based endowment funds to raise funds.
The company has private equity major General Atlantic, Naspers, Verlinvest, Chan-Zuckerberg Initiative, Sequoia Capital, Lightspeed Venture Partners, CPPIB, among others as investors. Times Internet, the digital arm of Bennett Coleman and Co, which is the publisher of The Economic Times, is also an investor in the company.
Founded by engineer and mathematician Byju Raveendran, the eponymous company is one of the rare Indian consumer internet companies, where the founders, which also includes, Riju Raveendran and Divya Gokulnath, hold close to a 35% stake in the company they founded.
The Bengaluru-based company has paid users at about 2.8 million. Byju’s claims it has 40 million registered users on its platform. The company has forecast revenue of Rs 3,000 crore in the 2019-20 financial year.
“Byju’s has emerged as the leader in the Indian education-tech sector. They are pioneering technology shaping the future of learning for millions of school students in India. We are excited to support Byju and the team,” Shleifer, partner at Tiger Global, said in the prepared statement to the media.