BYJU’S funding

byju's funding

Edtech unicorn BYJU’S has secured Rs 3,328.23 crore ($460 million approximately) as part of its ongoing Series F funding round led by MC Global Edtech Investment Holdings at a valuation of $13 billion.

The other investors who participated in this round involve XN Exponent Holding, Arison Holdings, B Capital, Baron Global Advantage Fund, TCDS (India), and TIGA (India), filing with the Registrar of Companies by Byju’s reveal.

As per the RoC filings, BYJU’S issued 1,40,233 compulsorily convertible preference shares (CCPS) at a face value of Rs 10 with a premium of Rs 2,37,326.33.

MC Global held the majority share in this round of funding with an allotment of 68,613 CCPS succeeded by Baron at 24,535 and B Capital at 23,622. According to BYJU’S, the amount raised in this round will be utilized for working capital requirements and business expansion.

Post this transaction, MC Global will hold a 1.73 percent stake in the company and Facebook Co-founder Edurado Saverin’s B Capital will hold 0.59 percent.

This is the first fundraiser for BYJU’S this year as it had raised over $1 billion in 2020.

The prospects of edtech segment in the startup ecosystem have been on the rise ever since the beginning of the covid-19 pandemic with most of the educational institutions being shut and the demand growing for remote learning modules.

According to the Indian Private Equity and Venture Capital Association (IVCA), edtech funding rose from $522 million in 2019 to an all-time high of $2.2 billion in 2020.

BYJU’S also has been on an acquisition spree with WhiteHat Jr for $330 million and is now undertaking the due diligence of offline tutoring school for various competitive exams Akash Educational Services, which is owned by private equity players Blackstone.

There are rumors that BYJU’S is also in talks to acquire the Mumbai headquartered edtech startup Toppr.

Other leading edtech startups like Vedantu and Unacademy have also been acquiring other startups besides raising fresh capital.