Bengaluru-based edtech major Think and Learn (Byju's), the company that owns and operates K-12 learning app Byju’s, has secured a new round of funding of $200 million from New York-based investment firm Tiger Global Management.
According to reports, the transaction will value the company at about $8 billion. While the company did not disclose any specific details on the round, the investment reportedly comes after months of talks between the investment firm and Byju’s.
Commenting on the latest development, Byju Raveendran, Founder and CEO of Byju’s, said in a statement,
“We are happy to partner with a strong investor like Tiger Global Management. They share our sense of purpose and this partnership will advance our long term vision of creating an impact by changing the way students learn. This partnership is both a validation of the impact created by us so far and a vote of confidence for our long term vision.”
According to a report, citing sources familiar with the matter, secondary transactions, estimated at around $100 to $200 million, are also anticipated that will provide exits to some of the company’s early backers.
Launched in 2015, Byju’s creates learning programs for K-12 students as well as for competitive exams. The edtech startup managed to turn profitable in June 2018 after achieving $14.3 million in monthly revenue, as the number of paid users increased. The company now claims to have over 40 million registered users and three million paid subscribers from both rural and urban areas in India. According to the company, the average number of minutes a student spends on the app has increased from 64 minutes to 71 minutes per day over the last year.
The company is currently working on launching programs in vernacular languages to make it accessible in the remote parts of the country.
Lauding and dubbing Byju’s as the leader in the Indian edtech sector, Scott Shleifer, Partner at Tiger Global, said in a statement,
“Byju’s has emerged as the leader in the Indian education-tech sector. They are pioneering technology shaping the future of learning for millions of school students in India. We are excited to support Byju and the team.”
According to reports, Byju’s is likely to raise, through the course of 2020, upwards of $1 billion, and is reported to be in talks with multiple investors, including from certain US-based endowment funds. The company has forecast revenue of Rs 3,000 crore in the 2019-20 financial year. In FY19, it tripled its revenue from Rs 520 crore to Rs 1,480 crore and turned profitable on a full-year basis.