Countdown to Indian Edtech Decacorn Byju's IPO: What You Need To Know
Geojit Financial Services investment strategist VK Vijayakumar said IPOs of companies like Paytm, Zomato, and LIC have affected investor sentiment. Afterward, investors are seeking good investment opportunities. Companies, meanwhile, are also making strides. Anand Rathi Investment Banking director and head of equity capital markets Prashant Rao said the current environment is challenging and companies with approvals are waiting for the right time to go public.
Think and Learn Private Limited. As a result of the company's creation, Byju's was founded by Raveendran and Divya Gokulnath in 2011. By began teaching mathematics in 2006 as a specialist. They founded an organization in 2011 that offers video-based learning programs and cutthroat tests for K-12 students. The company entered the Deloitte Technology Fast 50 India and Deloitte Technology Fast 500 Asia Pacific evaluations in 2012 and has been participating in those evaluations since then.
Byju's IPO details aren't known yet, but the company is preparing for its IPO, which is expected to be released by mid-2022. According to news reports, the company might raise $400 million to $600 million in its IPO.
It is a freemium application for instruction coaching that spiked in popularity for a freemium model, offering free access to content for 15 days after registration. The educational contribution substance was dispatched in August 2015 for students in grades 4 to 12, and an early learning program was launched for students in grades 1 to 3. Moreover, it prepares students for Indian assessments such as IIT-JEE, NEET, CAT, IAS, and global assessments such as GRE and GMAT.
Advanced liveliness videos clarify academic subject matter and ideas. Reports indicate that they have around 4 crores (40 million) clients, 30 lakh (3 million) paid endorsements and an 85% level of consistency annually. An Indian-language application will be dispatched in 2019 by the organization. Understudies in other countries who speak English would also be able to use a global application variant. Byju's Early Learn App has recently been updated with new kindergarten-related projects.
Furthermore, in April 2021, the organization announced the launch of "BYJU'S Future School", to be led by WhiteHat Jr Founder Karan Bajaj. We envision the Future School as a place where latent learning becomes dynamic with intuitive learning stages mixed with coding and subjects such as Math, Science, English, Music, and Fine Expressions through storytelling. BYJU’S will dispatch the Future School in the USA, UK, Australia, Brazil, Indonesia, and Mexico in May.
Aarin Capital subsidized Byju's seed funding in 2013. Financial backers, including Sequoia Capital India, had invested almost $785 million in Byju's as of 2019.
Priscilla Chan and Mark Zuckerberg co-sponsored the Chan-Zuckerberg Initiative, which increased Byju's profile in Asia.
The India cricket team now has Byju's as their title sponsor, replacing Oppo. A large portion of the content is available only through a paid membership at Byju's. Byju managed to generate an income of about 260 crores (US$40 million or €33 million) in 2017, multiplying it by 520 crores in 2018.
A series F subsidizing round of $460m was raised by Byju in March 2021. A $1 billion investment was made in Byju's by B Capital, Baron Funds, and XN in April 2021.
Several acquisitions have been made by Byju recently. Gradeup, a platform for preparing for exams online, is the company's most recent acquisition. Byjus has acquired five companies within a year. Previously, the company acquired Aakash Educational Services and Great Learning, companies that provide offline preparation for examinations, in addition to Whitehat Jr and Toppr. Its market value has increased to $16.5 billion in one and a half years after raising $1.5 billion in funds.
The funding is part of the company’s plan to use the fund for inorganic expansion, especially in the US, as per the PTI report. The company has already acquired US-based reading platform Epic for $500 million and coding site Tynker for $200 million. The other overseas acquisitions of Byju’s include Singapore-based Great Learning for around $200 million and Austria’s mathematics operator GeoGebdra for approximately $100 million.
?UBS, Blackstone, ADQ, Phoenix Rising, and Zoom founder Eric Yuan recently raised $350 million for the company.
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Byju's reported a loss of 4,588 crores for its fiscal year that ended on March 31, 2021, 19 times greater than the prior fiscal, and delayed the release of its audited financial accounts until September 2022. In the fiscal year 2020–21, losses increased from 231.69 crores in the previous one. Compared to FY20, revenues dropped from 2,511 crores to 2,428 crores.
The amount that BYJU's has paid to Blackstone for clearing the Aakash acquisition deal is nearly Rs 2000 crore. Blackstone owns nearly 38 percent of Aakash, while BYJU's has paid nearly 75%.
?Aakash Educational Services was to be acquired by BYJU in June 2022 and consideration to the tune of Rs 1,983 crore was to be paid to the sellers in June 2022. This has been deferred until September 23, 2022, according to BYJU's FY21 financial report.
The remaining amount in the Aakash deal may be paid by BYJU's $500 million (roughly Rs 3,900 crore) soon, valued at around $23 billion.
Legal experts state that if BYJU's doesn't pay Aakash deal by September 23, the edtech major will have to approach the Reserve Bank of India (RBI) for approval. The $22 billion valuation of BYJU's seems confusing.
Harsh Goenka and Kiran Mazumdar-Shaw have taken notice of one of India's most valuable startups, Byju's, but for all the wrong reasons. Byju's $22 billion valuation seems to be a mystery to two of India's most prominent business personalities.
Apparently, Goenka was confused by the numbers, sharing on Twitter: "Byju's revenues - 2,280 crores, Byju's losses - 4,588 crores (increases 17 times). That means you give me ?1 and I will return ?2. The company is valued at $22 billion (number one among startups). Hottest sector to invest- edutech. Nothing is making sense to me! Can anyone explain please?"
In response to his tweet, Biocon chief Kiran Mazumdar-Shaw said, "It's like virtual reality - you see it and then you don't." The valuations just don't add up, and yet real businesses are undervalued! (Sic)".
However, Byju's claimed that its revenue increased four-fold in the fiscal year ended March 31, 2022, while denying its profit or loss figures. WhiteHat Jr. Losses and deferred revenue contributed to the company's losses in FY21, according to Byju's.
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