In a bid to expand its global footprints, education technology platform Byju’s has raised $540 million funding round led by South Africa’s Naspers Ventures. The transaction is expected to value the company at around $3.6-3.7 billion, making it one of the top five most valued internet companies in India.
Along with Naspers Ventures, the funding round also saw participation from the Canada Pension Plan Investment Board (CPPIB) and private equity firm General Atlantic. As per the report from ET, this new funding round will give the company a pre-money valuation of around $3.2 billion to the company. This is a significant jump in the worth of Byju’s as it was valued at $1 billion when it closed a round of funding earlier this year.
Russell Dreisenstock, Head of International Investments, Naspers Ventures who will also join the board of the company, said:
With the largest school-age population in the world and a growing middle-class with the willingness to commit significant resources towards quality education for their children, BYJU’S is perfectly positioned to provide an effective supplemental education solution for students across India.
In a statement, the company said that the newly raised capital will be used “to further innovate, explore and set new benchmarks for tech-enabled learning products.”. The company has aggressive plans for international market expansion and will make bold investments in technology that will help to further personalize learning for students.
The company is reportedly looking for acquisitions to accelerate its international expansion through acquisitions. It is planning to expand its services by early next year and it will focus on English speaking markets like the United States, UK, and Australia.
Byju’s-The Learning App, which is the company’s flagship offering, caters to students from classes four to 12. Till June this year, it had around 20 million registered students and 1.26 million annual paid subscribers. This has now increased to 30 million registered students and 2 million annual paid subscribers.
Byju Raveendran, founder & CEO of the company, said:
While near-term profitability is important for us, as a company our main focus continues to be on long-term sustainable growth. We are pioneering ‘better learning for tomorrow’ with technology as an enabler, and have been working towards making students active learners. It is only through active learning that we can prepare our youth for the jobs of tomorrow.
So far, Byju’s has raised around $244 million from investors including the Chan-Zuckerberg Initiative, Tencent, Sequoia Capital, Lightspeed Venture Partners, Sofina, Times Internet, BCCL, and Verlinvest. This new funding round would also make the three-member founder group of Byju’s dollar billionaires.
The company has had a strong and steady growth over the last few years. It has been growing at 100% annually for the last three years and recently crossed Rs 100 crore in monthly revenue. Byju’s is looking to achieve a revenue target of Rs 1,400 crore this financial year.