Byju’s valuation surges to $5.4bn after fresh $25m funding round

Byju’s valuation surges to $5.4bn after fresh $25m funding round
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Bengaluru, Mar 21: Education technology platform Byju’s valuation has surged to over Rs 37,000 crore or around $5.4 billion after fresh funding of $25 million from existing backer General Atlantic, making it the fourth most-valued private internet company in India.
The fresh tranche will push the value of promoter group led by Byju Raveendran’s 36% shareholding in the Bengaluru-based company to Rs 13,267 crore or $1.9 billion, according to sources and filings with the ministry of corporate affairs (MCA).
The deal would make Raveendran, who holds the stake with his wife Divya Gokulnath and brother Riju, one of the wealthiest new economy entrepreneurs. It is also one of the only major venture capital backed companies where founders still hold over 30% stake.
Byju’s valuation jump comes about three months after the seven-year old company was valued at $3.6 billion in December when it raised capital from Naspers Ventures, investment arm of South African media giant, and Canadian pension fund CPPIB. The company was valued at $1 billion till early last year.
Calls made to Raveendran did not elicit a response and company spokesperson declined to comment.
Now 37-year-old Byju had started the company as an offline coaching class for Common Admission Test (CAT) to enter IIMs back in 2007. Then several of his students joined him in 2009, and he registered his company as Think & Learn Private Limited in 2011. The company tried out tablet-based format, but tasted major success after launching mobile application in 2015. Since then, it has attracted investments from Facebook CEO Mark Zuckerberg’s foundation and Chinese internet giant Tencent, among others.
“I think this is a very positive development for the ecosystem and showcases that investors are valuing the opportunity in the Indian ed-tech. Byju’s has also built a good brand along with strong revenue traction over the years,” said Sameer Brij Verma, MD at venture firm Nexus, where he led the investment in ed-tech player Unacademy.