Edutech major Byju’s is not in any mood to slow down. After investing or picking stakes in various companies, it is now planning to raise more capital to support its expansion plans. According to an ET report, the company is in discussion with a group of investors to raise around $500-600 million (Rs 3,630.3-4,356.3 Crore) in a new financing round.
With this investment, the startup will be valued as much as $14-15 billion, stated the report. “B Capital, founded by Facebook co-founder Eduardo Saverin is among the investors which are likely to come on board. Some US investors and existing backers of the company will also participate in the new round,” said a person in the know of the matter.
It is estimated that this capital infusion is largely to fund Byju’s acquisition of Aakash Educational Services which is being pegged at $700-800 million in size, sources said. The report stated that Byju’s will only undertake 30 per cent share swap and 70 per cent will be cash transaction.
The company is also in the final stages of buying out Mumbai-based Toppr, which will involve about $50 million in cash with the rest of it being stock. According to sources, this fund raise will not be limited to close all the deal in India, but to support its buyout plans in the United States.
The pandemic has worked in the favour of Byju's as it has seen business growth. The app has around 70 million registered students and 4.5 million annual paid subscribers, as per the company. The company has doubled its revenue to Rs 2,800 crore in FY19-20 from Rs 1,430 crore in the previous fiscal.