India’s ed-tech sector is getting a massive financial push today. Online tutoring platform Byju’s, has now raised $400 million in a fresh round, valuing the company at $4 billion — the fourth most valuable startup in India.
According to the documents filed with the Registrar of Companies, the funding round was raised from Canada’s CPP Investment Board, Naspers Ventures, General Atlantic and some existing investors of the company.
With a valuation of $4 billion, the company is right behind Paytm, Ola, and Oyo Rooms in terms of valuation of Indian startups. The newly raised funding will help the company to work on its geographic expansion plan.
Vinod Murali, managing partner at venture debt firm Alteria Capital which has invested in Byju’s, told Mint:
A direct investment of a big pension fund into the Indian venture ecosystem is a positive sign and opens up international markets for Byju’s. Byju’s style and the way the business has been built—it is transferable globally—and I expect them to use the new funds to fuel their overseas expansion plans.
Byju’s started out as an offline teaching center in Bengaluru in 2008 and launched its digital education platform in 2015 in order to increase its user base. The company is operating two separate learning apps — one catering to students from Classes VI to XII and one that caters to students from Classes IV and V.
Since its foundation in 2008, the company has managed to raise more than $240 million in funding from Tencent, Verlinvest, Chan-Zuckerberg Initiative, Sequoia Capital, Lightspeed Venture Partners, Aarin Capital among others. All of those rounds were primarily targeted at geographic expansions.
In June this year, Byju’s claimed that the company has touched ₹100 crore in monthly revenue and also raised its annual revenue target for this year to ₹1,400 crore. The company claims that it is among the few profitable unicorns in the country. There is no official publicly available data to back that though.
In the online tutoring space, Vedantu raised $11 million last month in a round which was led by Omidyar Network. Unacademy, another online learning platform, raised $21 million in its Series C round from Sequoia India, SAIF Partners, among others.