Key Points of Byju’s Funding Round:
- Byju’s has secured $800 million in a funding round led by two sovereign wealth funds and private equity firms.
- The latest funding round has brought the company’s valuation to $22 billion, the same as the previous funding round in October 2022.
- Byju’s has a target to become profitable by the end of April 2023 and has already taken steps to achieve this.
- The company has retrenched 2,500 employees while hiring 10,000 teachers for India and overseas.
- Byju’s had a challenging financial year, booking a loss of ₹4,588 crore in the fiscal year ending March 2021, which widened further to ₹231.69 crore in 2020-21.
- Despite this, Byju’s reported a four-fold increase in revenue to ₹10,000 crore in the fiscal year ending March 2022.
- Byju’s is in talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants, and its founder is working on a turnaround plan to make the company profitable.
Details of Byju’s Funding Round:
Byju’s, the leading edtech major in India, has secured a fresh capital infusion of $800 million in a funding round led by two sovereign wealth funds based in West Asia and large private equity firms. The funding round also saw participation from existing investors. The latest round brings the company’s valuation to $22 billion, the same as the last funding round in October 2022, where they raised $250 million.
Byju’s aims to become profitable by the end of April 2023 and has already taken steps to achieve this target. Under its turnaround plan, the company has retrenched 2,500 employees while hiring 10,000 teachers for India and overseas. Byju’s is optimistic about its future growth prospects as it seeks to capitalize on the booming edtech market in India.
The company has had a rocky financial performance in the past. In the fiscal year ending March 2021, Byju’s booked a loss of ₹4,588 crore, which is 19 times higher than the preceding fiscal year. However, the losses widened even further to ₹231.69 crore in 2020-21. Revenues during the financial year 2021 dropped to ₹2,428 crore from ₹2,511 crore in FY20.
Despite the challenging financial year, Byju’s reported a four-fold increase in revenue to ₹10,000 crore in the fiscal year ending March 2022. The company, however, did not disclose its profit or loss figures for that year.
Meanwhile, Byju’s is currently in talks with creditors to renegotiate an agreement governing a $1.2 billion loan that’s in breach of covenants. The company’s founder, Byju Raveendran, a former educator himself, is working on a turnaround plan to make the company profitable this year. With the fresh capital infusion, Byju’s is expected to stave off potential debt issues and continue its growth trajectory in the edtech market.
Abour Byju’s:
Byju’s, an edtech multinational, is based in Bangalore, Karnataka, India, and was established in 2011 by Byju Raveendran and Divya Gokulnath. The company’s valuation stands at US$22 billion as of March 2022, and it reportedly boasts over 115 million enrolled students.
For More Latest News Click Here
