Byju’s, an Indian edtech company that prepares students pursuing undergraduate and graduate-level courses, has announced the completion of its fundraising round.
The company, which raised a financing round in March, said it has just raised $250 million from existing investors. Although, the company did not disclose the full list of investment companies that participated in the fundraise, it stated that Qatar’s sovereign fund, Qatar Investment Authority, led the fundraise.
Byju’s was founded in November, 2011, by Byju Raveendran, and Divya Gokulnath. The company is headquartered in Bengaluru, India. Byju’s is an educational technology company that develops personalized learning programs for K-12 students.
“Byju’s is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favour. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact. Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability,” Raveendran said.
So, far, the edtech giant has raised $5.7 billion since launching 11 years ago. The company has operational presence in 120 countries, and claims to have over 150 million users, with 7.5 million annual subscription. It has received financial backings from global investment firms like Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Tencent, Sequoia Capital, Sofina, Verlinvest, IFC, Aarin Capital, TimesInternet, Lightspeed Ventures, Tiger Global, Owl Ventures & Qatar Investment Authority.
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Lately, investors in Asia have been cautious about where they put their money, and this has severely affected fundraising and deals making the the region. Market intelligence platform Tracxn, reported that Indian startups raised $3 billion in the third quarter, which ended in September. According to Tracxn, this is a 57% downturn from the previous quarter, and 80% year-over-year.
Byju’s is one of India’s most profitable companies, and with this funding, it plans to expand globally, and acquire startups, and broadens its offerings in several international markets.
Byju’s has recently announced its plan to eliminate 5% of its workforce, amounting to about 2,500 jobs, across multiple departments. The company also said it will cut its marketing budget, and work towards improving its finances and achieve profitability by end of the current financial year.