Billionaire Yuri Milner investment firm, DST Global is close to investing around $400 million in well known Indian online education startup Byju’s. This development is reported by Bloomberg.
Interestingly, as per the sources quoted on the report, this deal which may be announced in the coming weekend will value Byju’s at $10.5 billion. And if (which seems to be possible), this happens, it clearly makes Byju’s India’s second-most valuable startup after Alibaba-backed digital payments service platform, Paytm.
Russian-Israeli billionaire Yuri Milner is one of the world’s best-known technology investors. He includes some largest internet firms in his portfolio like Alibaba, Facebook, and Twitter. Notably, DST Global has also funded some high-profile Indian startups such as Flipkart, Ola, Swiggy, and Udaan.
This comes when India’s online education segment is on fire amid coronavirus pandemic which results in lockdowns shuttered schools across the country and promoting online learning across all tiers.
And this becomes a golden chance for Indian EdTech startups, especially like Byju’s & Unacademy. Backed by some of the biggest names in the world like Facebook founder Mark Zuckerberg’s Chan Zuckerberg Initiative, Naspers Ltd., Tiger Global Management, etc, BYJU’s claims to simplify math and science concepts for K-12 students through games and videos.
Founded in 2011 by Byju Raveendran, who’s a former teacher and son of educators, the app currently caters to students from kindergarten through 12th grade and has over 57 million registered users and over 3.5 million paid subscribers.
The interesting part is that it is adding over 300,000 new subscribers every month. Byju’s doubled revenues in the year ended March 2020 to $373 million from the previous financial year. And which makes it more attractive for investors is the fact that BYJU’s is one of the rare startups from India, which is profitable.
Byju’s has raised $400 million this year alone and was last funded by Bond Capital co-founded by Silicon Valley investment guru, Mary Meeker, formerly of Kleiner Perkins.
But parallelly, BYJU’s rivals like Vedantu, Unacademy are also getting investors’ eyes. Like last month Vedantu raised $100 million from U.S.-based investor Coatue Management, whereas Unacademy is said to be raising funds at a valuation of over $1 billion.