BYJU’S in Talks to Raise More Than $600 Million to Fuel Startup Growth — Report

By McKenzie Carpenter Thursday, March 25, 2021

In the age of COVID-19, pretty much everything has been forced into an online format in some form, including education. BYJU’S, an edtech startup app company, is reportedly raising $600 million to help the business acquire other startup companies.

A person counting money.

About BYJU’S

BYJU’S is an Indian edtech startup app company that develops personalizable learning programs for K-12 students. Founded in 2011, the edtech business was founded on the premise of creating world-class learning content for students of all ages.

According to the edtech app company, BYJU’S has more than 75 million downloads and is featured in more than 1,700 cities worldwide, with an average time spent on the programs of 71 minutes per day. In 2015, the edtech business even launched a new app specifically designed for preschool through third grade that features Disney characters.

To date, the BYJU’S has raised more than $2.1 billion in funding and has even acquired several other startup companies, such as Scholr, Aakash Educational Services, Osmo, and more.

Last September, the edtech business raised $500 million at a nearly $11 billion valuation. Reports today indicate BYJU’S is in talks for a $600 million financing round, a more than $14 billion valuation.

New Funding?

TechCrunch reported that Byju Raveendran, co-founder and CEO of the edtech business, informed existing investors last month that he would be seeking more capital this month. Reportedly BYJU’S new capital will be used to acquire more startup companies.

Global shutdowns and schools transitioning to online formats has proven to work in favor of the startup app company. The edtech business has a revenue run rate of $800 million, and is projected to reach $1 billion in the next 12 to 15 months. In addition, BYJU’S gained 20 million new users for the edtech platform four months into COVID-19 lockdowns. In contrast, it took the startup app company four years to reach 40 million users. BYJU’S is currently the second most valuable startup company behind fintech business, Paytm, which was valued at $16 billion in its previous funding round.

The edtech business has not commented on the matter.

The Edtech Industry

As of now, the need for online educational tools does not seem to be going away anytime soon. In fact, it’s more likely to continue ramping up as people realize the value edtech businesses can provide. The COVID-19 pandemic affected more than 1.2 billion students in 186 countries due to school closures. Additionally, student retention rates average between 25% and 60% more in an elearning setting than when in a classroom.

In 2019, the global educational technology market was valued at $76.4 billion and is projected to grow at a CAGR of 18.% between 2020 and 2027.

Edtech businesses seem to be popping up more and more. In February, Startup Savant reported on Nerdy going public and Wize raising $3 million in funding. It was also reported in March that Newsela, an edtech textbook replacement business, raised $100 million.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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