The most recent round of capital follows Byju’s announcement last week of a number of steps it will take to streamline its operations and attain group-level profitability by March 2023.
“Byju’s is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favour. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact. Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability,” said Byju Raveendran, founder and chief executive of Byju’s.
Byju’s, a significant player in edtech, revealed on Monday that it has received $250 million in a rights issue from its current investors, valued at $22 billion. The company said that Qatar Investment Authority (QIA) took part in the round but provided no split information.
Previously, in July 2019, QIA led a $150 million investment in Byju’s. In the same round, Owl Ventures also made an investment in the business. The Chan-Zuckerberg Initiative, Sequoia Capital India, Silver Lake, BlackRock, Sands Capital Management, Alkeon Capital Management, Sofina, Verlinvest, Tencent, Naspers Ventures, Canada Pension Plan Investment Board (CPPIB), General Atlantic, Tiger Global, Lightspeed Venture Partners, Times Internet, Aarin Capital, and IFC are the other investors in the Bengaluru-based company in addition to these two.
The most recent round of capital follows Byju’s announcement last week of a number of steps it will take to streamline its operations and attain group-level profitability by March 2023.
These actions include firing 2,500 workers, or 5% of its workforce, over the course of the following six months, integrating the businesses it has purchased over the past three years, overhauling its sales process, and employing 10,000 additional teachers over the course of the following year.
The layoffs are planned in stages across the product, content, media, and technology divisions. The company claims that the cost reductions will improve unit economics and provide the groundwork for its initial public offering (IPO).
Toppr, Meritnation, TutorVista, Scholar, and HashLearn are just a few of the businesses that Byju’s has successfully integrated within its core K–10 business. Both Aakash Institute and Great Learning will carry on as independent businesses.
According to the corporation, Byju’s will now refocus its marketing spend on its international markets. The Tiger Global-backed business said that in order to convert leads more effectively and efficiently toward its target customers, it is strengthening its inside sales force.
Byju’s posted a loss of ₹4,588 crore in the financial year 2021 (FY21), up from ₹231.69 crore in FY20, while its total expenses ballooned to ₹7,027.47 crore in FY21, against ₹2,873.34 crore in FY20.
