Ed-tech company Byju’s may be eying expansion in international markets. The company is reported to be in advanced talks with investors to raise another hefty $50 million investment following the $75 million it raised in March from Sequoia Capital & Sofina. The large amounts of capital will be used to cut the company’s establishment curve in new markets and fuel inorganic growth.
The company is already pretty well established in India and the Middle east. It jumped to the news in march when it raised the largest amount ever mustered by an Indian startup belonging from the education niche. The company is now planning to enter mature markets such as United States, UK and other Commonwealth countries, over the course of the next few months.
The expansion makes sense as the next strategic move for a company that has already entrenched itself as the most used service in it’s niche in a country. Now, besides working to improve the services it already offers, Byju’s could either move into other verticals, or take what it is already good at to other markets. With no dearth of cash to drive inorganic growth, Byju’s has decided to go with the latter.
Speaking on the topic, Byju, Founder and CEO, BYJU’s Learning App, said
We are seeing strong inbound interest from multiple investors over the last few months, thanks to our explosive growth. We are keen to bring in partners who will catalyse the next stage for us. On the other hand, we are humbled by the rising popularity and high engagement for our product with 90% annual renewal rates from the students. We are constantly innovating the way in which we make learning accessible, effective, engaging and personalized
And explosive is certainly right. The startup has been enjoying an over 15% M-O-M growth and managed to rake in around 30 crore as it’s revenue last month. The service currently has over 200,000 paid subscribers, with 30,000 added just in the last one month. The most interesting past however, is the fact that users are actually spending time on the app.
While user engagement is taken as a measure of success for almost any application out there, the same is even truer for an educational app like Byju’s. If students are actually spending an average time of 40 minutes interacting with the application every day, well, Byju’s must be doing something right.
By making use of original content, graphics and other video tools to make things more interesting, Byju has managed to carve out a large slice for itself in India’s burgeoning ed-tech market. The fact that it uses technology and data science to make learning personalized to a huge extent — to the extent of promising to address learning gaps, if any — makes the service all the more popular among student’s and their parents.
It will be interesting to see what kind of a strategy it deploys while moving to these mature, developed markets. While it has no dearth of capital in its war chest — which will be overflowing once it realizes a $50 million round — the west already has a whole bunch of startups operating in the ed-tech niche, which unlike India, is not in it’s nascent stage.
Another challenge would be coping and adjusting with the significantly different education system in these countries. However, considering that Byju promises to be able to help student’s navigate through the ridiculously hard IIT and MBA entrance examinations, nothing should be impossible for it anymore. Stay tuned!