Byju's to raise $500-600 million in the first fundraising round of the year

Byju's to raise $500-600 million in the first fundraising round of the year

The homegrown Edtech company has been on a spree to expand and consolidate by buying other Ed companies like Aakash and Toppr

Expecting the increase in the valuation to nearly $15 billion, Byju's has initiated the process of raising $500-600 million in the fresh fundraising round, having its first round in 2021 which is expected to be signed by next week.

Economic Times reported, "B Capital, founded by Facebook co-founder Eduardo Saverin is among the investors which are likely to come on board. Some US investors and existing backers of the company will also participate in the new round."

Sources told ET that the primary fundraising is aimed at financing Byju's acquisition of Aakash Educational Services, which is estimated to be $700-800 million in size. While 70 per cent of the Aakash deal is likely to be in cash and the remaining 30 per cent through a share swap, Byju's is gearing up to accomplish the deal in a few weeks from now.

With Aakash on the line, Byju's is also wrapping up to buy Mumbai-based Toppr involving $50 million in cash and the rest in stock. "The latest fundraise is largely primary as Byju's would utilize the capital to close these acquisitions. It is also eyeing some buyouts in the US. The proceeds from the fundraise will also be used to expand globally," reports ET.

Byju's has been active exponentially with its fundraising and acquisition over the last three years. The Edtech major has raised over $1.5 billion in 2020. Last year the company valued at close to $12 billion with having more and more people joining the list of shareholders. In 2020, it acquired WhiteHat Jr. for $350 million amid pandemic. In the pursuit of fundraising, Byju's raised $200 million each from Tiger Global and General Atlantic; $500 million from Silver Lake and $200 million from T Rowe, BlackRock; $122 million from DST Global; $23 million from Bond venture capital firm.

Becoming the largest Edtech major in the country, Byju's has shown an exponential growth amid pandemic with 20 million new subscribers, four months after lockdown reporting a jump in the revenue from ₹2800 crore in March 2020 to ₹6000 crore by July 2020