Byju Raveendran, the company’s founder, and CEO said in an interview with FE in September last year that the company added more than 25 million free users to the platform between April and August, compared to just over 40 million in the first four and a half years.
Byju’s, which claims to have 80 million registered users and 5.5 million subscribers, has grown its sales by a cumulative 125 percent to about $400 million in the last three years.
A new edtech company Byju’s is in advanced negotiations with a group of investors to raise $600-700 million in a new round of funding. According to sources familiar with the negotiations, if the deal goes through, the online education business would have a post-money value of about $15 billion.
In response to FE’s inquiries about the fundraise, Byju’s did not respond.
The additional funds would be useful for the Bengaluru-based firm, which is rumored to be in the midst of a round of acquisitions. Last month, FE announced that Byju’s is in talks to buy rival Toppr in a deal worth more than $100 million. The company is also rumored to be nearing an agreement to buy Aakash Instructive Administrations, a company that operates a chain of physical test readiness training centers, for nearly $1 billion.
Last year, the edtech sector, led by Byju’s, received the majority of start-up funding as the pandemic resulted in a surge in subscriptions for online educational services. A group of investors, including new backers such as Silver Lake and Alkeon Capital, put over $1 billion into the firm, valuing it at over $11 billion. So far, the company has raised nearly $2 billion.
Byju’s, which claims to have 80 million registered users and 5.5 million subscribers, has grown its sales by a cumulative 125 percent to about $400 million in the last three years. The company aims to reach $1 billion in sales by the end of FY21.
“Students who profited by getting to the substance pursued membership … We are at 4.5 million paid clients on a 70 million free client base. Presently, a ton of clients will keep learning on the web on the opposite side of the emergency and we anticipate that the conversion should build,” Raveendran had said.
According to a recent study by EY-IVCA, the Indian edtech market is expected to rise 3.7 times in the next five years, reaching $10.4 billion in 2025 from $2.8 billion in 2020. By 2025, the market would have more than 37 million paying users.
“Expansion in digitization, fast development in the start-up ecosystem, the steadily advancing purchaser base, and the Coronavirus circumstance has given the edtech area a colossal development opportunity,” experts said.