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Byju's gets offer for US SPAC listing for $48 billion valuation

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Byju's gets offer for US SPAC listing for $48 billion valuation

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Byju's current valuation has touched $22 billion, sources said, with the company recently closing a private round of $400 million from new investors.

Edtech major Byju's has received an offer for a SPAC listing in the United States that could value the company at $48 billion, sources told CNBC-TV18. SPAC refers to a special purpose acquisition company that raises capital from an IPO only to acquire private companies to take them public.

Byju's has received a term sheet from Churchill Capital, a SPAC set up by former Citi executive Michael Klein, sources said. Byju's will raise between $4 billion-$5 billion through the SPAC. Bloomberg first reported the development.
Byju's current valuation has touched $22 billion, sources said, with the company recently closing a private round of $400 million from new investors.
The sources cited above said that the company has not finalized on the offer from Churchill Capital yet, and is also currently in talks with two other SPAC entities for a listing in the US.
The edtech company wants to list in 2022 and is looking to complete the listing process in the 8-12 months.
Sources said Byju's could also consider an India listing.
At $48 billion valuation, Byju's will be valued at a multiple of over 30 times on the projected FY22 revenues - the company is expecting to clock revenues of $1.5 billion in the current fiscal.
The company raked in revenues of $800 million in FY21, a jump from about $300 million in FY20.
Byju's has been on an acquisition spree, not just in India but in other markets as well. The company acquired US-based edtech companies Osmo, Tynker and Epic this year.
Byju's has over 115 million customers in India and about 60 million outside the country, with a large part of it based in the US.
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