India's PE-backed Byju's raises $400m
Indian online education start-up Byju’s has raised a $400 million funding round led by Naspers Ventures, an investment arm of South African media conglomerate Naspers.
Canada Pension Plan Investment Board (CPPIB) also participated in the round, along with General Atlantic and existing investors, according to filings with the Registrar of Companies cited by various media sources. The transaction is expected to value the company at around $4 billion, making Byju’s one of India’s most valuable start-ups.
Founded in 2011 by Indian engineer Byju Raveendran (pictured), Byju’s is best known for its tutorial app, which provides students from primary through high school with homework help and test and exam preparation. The company claims it reached profitability this year, while monthly revenue exceeds INR10 billion ($138 million). Its app has 22 million registered students and 1.4 million paid subscribers.
Byju’s has raised multiple rounds of funding from investors such as the International Finance Corporation, Sequoia Capital, and China’s Tencent Holdings. The Chan Zuckerberg Initiative, established by Facebook CEO Mark Zuckerberg and his wife Priscilla Chan, has also backed the company.
Currently, Byju’s is expanding to additional English-speaking markets including the US, UK, and Australia, along with deepening its business in India. It has made several acquisitions to support its growth, including the purchase of online tutoring sites TutorVista and Edurite from Pearson last year, and the acquisition of Indian math learning platform Math Adventures earlier this year.
India’s education sector is seen as an attractive investment destination, with demand expected to grow due to the country’s rising middle class, and a perception of insulation from economic shocks. A number of firms have backed educational technology companies, seeing these businesses as a useful entry point due to the large potential market available through smart phone users.
Investments in the space this year include a commitment for IMAX Program led by the Michael & Susan Dell Foundation and Gaja Capital’s commitment to Educational Initiatives.
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