Byju’s an Indian multinational educational technology company, in India is going to raise between $400 million to $600 million and then next year give a boost to plans for an initial public offering, according to the people familiar with the matter. In few weeks the online education provider Byju’s could close the pre-IPO fundraising at a valuation of about $21 billion, said one of the people asking to be anonymous. The fundraising is likely to be break evenly between equity and debt.
As early as the second quarter of 2022, the former teacher Byju Raveendran is focusing to file its initial IPO documents, two anonymous people said. It had looked earlier at a timeline of 12 to 24 months. A valuation of $40 billion to $50 billion has been discussed by the startup and its bankers, although the final confirmation will depend on financial results and investor demand, said the people.
“The same banks are involved in the current fundraising,” said one of the people among the banks in the talks are Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co. Byju’s, Morgan Stanley, JPMorgan, and Citi refused to comment. With IPO fundraisings on track to reach record levels India’s technology sector has marked an increase this year.
An April Bloomberg News report said, after uplifting about $150 million from UBS Group AG, Byju’s was being valued at $16.5 billion. which marked it just ahead of the second-most valuable startup in India. Meanwhile, an initial document has been filled by Paytm for what could be India’s largest IPO to date at $2.2 billion.
“The startup is targeting ₹ 100 billion ($1.4 billion) in revenue in the year ending March 2022, with a 20 percent margin. Byju’s has been on an acquisition binge in the past year, acquiring startups offering coding lessons, professional learning courses, and test prep classes for competitive Indian exams,” said founder Mr. Raveendran to Bloomberg News.
In the last year as the pandemic came ahead in India 45 million students were added by the company to its platform, and in July it was marked to be more than 100 million users on the Byju’s app. The annual renewal rate is 86 percent as 6.5 million are paid, subscribers.