Banglore-based e-learning startup, Byju’s, is reportedly in talks with its investors to raise about $400 million in its ongoing private equity funding round. According to the officials familiar with the matter, this additional capital, if finalized, then the valuation of the startup will touch a $10 billion mark.
Amid the coronavirus outbreak, Byju’s have seen surging in demand, and if the deal goes through it, then this ed-tech startup will hike over 20% in its valuation. In February 2020’s funding round, the startup was valued around $8.2 billion with the participation of the US-based VC firms, General Atlantic and Tiger Global Management LLC, who had invested between $350 million to $400 million in financing in a gap of one month.
According to the Bangalore-based startup, it had seen about a 150% increase in traffic and a registration of six million new students on its platform in March 2020. In July 2019, when San Fransisco-based VC firm, Owl Ventures and Qatar Funding Authority, had invested $150 million, the company was valued at $5.75 billion. In the duration of one year, Byju’s has rapidly grown.
As per the recent reports, Byju’s have more than 35 million registered users, out of which 2.4 million are paid customers. As the startup offers a free model of 15 days for new users, which brings more traffic to the platform. In the last few weeks, Byju’s has seen a substantial increase in free, as well as paid customers as the nationwide lockdown imposed in late March, has led all college students to come online. For more customer engagement and user base expansion, Byju’s is planning to add 2 more segments- ‘two-way interaction’ and ‘after school’ in the coming months.
As per the sources, there is no report of finalizing the deal yet, whereas it is also said that if the agreement finalizes then, the terms might change. If the terms go right, then Byju’s would become the second most valuable startup in India after Oyo, which also has a $10 billion valuation.
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