India’s biggest edtech company Byju’s is looking to raise $400-600 million ahead of its IPO next year, reported Bloomberg. The company is likely to close its pre-public fundraising round at a valuation of $21 billion, with the new funds being raised equally in equity and debt.
The company’s closest rival, Unacademy, is valued at $3.5 billion. Byju’s recent regulatory filing revealed that it recorded an 80 percent growth in its revenue but expenditure had also shot up by 30 times over last year.
The company is looking to file the papers for its public offering early in the second quarter of next year. Byju’s is hoping for a valuation of $40-50 billion, with the final valuation being determined closer to the filing based on latest financial and earnings reports.
The company’s public offering may be one of the largest in India after Paytm’s expected IPO in October at a valuation thought to be around $25-30 billion. At the moment, Byju’s is behind Paytm as the second most-valuable startup in India.
Morgan Stanley, Citigroup Inc and JPMorgan Chase & Co are expected to participate in the IPO process, and are also part of the current fundraising, said Bloomberg.
Formally known as Think & Learn, the company has roped in notable investors, including Facebook founder Mark Zuckerberg's Chan-Zuckerberg Initiative, Naspers, Tiger Global Management and Silver Lake Management, the giant private equity player.
With China’s crackdown on private edtech, investors are expected to jump ship and hedge their bets on Indian companies. India already had a record year for IPOs and venture investments as more investors want a slice of the Indian economic pie.
(Edited by : Shoma Bhattacharjee)
First Published: IST