Byju’s IPO Plans

5.0

06 Oct, 2021

5 min read

710 Views

icon
Currently, India's most valuable unicorn, online education provider Byju's, is in talks to raise $400 million to $600 million and then expedite plans for an initial public offering next year.

Introduction

Byju's, an education technology company with a multinational presence, is set to close its pre-IPO funding round in the next few weeks with a valuation that amounts to approximately USD 21 billion. It will then seek to hold a valuation ranging between USD 40 and USD 50 billion in its initial public offering (or IPO). This valuation will be made keeping in mind its financial results and the demand experienced by its investors.

A Brief Overview

With an aim to raise USD 400-600 million, Byju’s plans to follow through with an IPO in 2022. Its pre-IPO fundraising is expected to be well met and has a valuation of about USD 21 billion. This fundraising is set to be evenly distributed between equity and debt.

Named after its founder, former teacher Byju Raveendran, the company seeks to file its preliminary IPO documents in the second quarter of the following year. Previously having considered a 12 to 24-month timeline, the start-up and its bankers seek out a valuation of USD 40 – USD 50 billion.

Banks currently vying for management roles for Byju’s IPO include Morgan Stanley and JPMorgan Chase & Co., along with Citigroup Inc, who are each currently involved in fundraising.

Alternatives that have been pitched but seem unlikely compared to an IPO in India include an IPO in the United States and a merger with a SPAC. (SPAC here refers to a special purpose acquisition company).

Fast Facts

Financial Standing - Despite Byju’s revenue expanding by 82.31 percent from operations, the consolidated loss experienced by the company grew to INR 262 Crores in fiscal 2019-2020.

Operating Revenue – This rose from INR 1306 Crores for FY2019 to INR 2381 Crores for FY2020. Set against this backdrop, annual expenses soared by 119 percent jumping from INR 1377 Crore to INR 3022 Crores as per regulatory filings.

Sales that drew clients in – Educational tablets and SD cards drew in nearly three times the earnings that reference books did. INR 1676 Crores were derived from the sale of said devices while INR 561 Crores were derived from the sale of books in FY 2020.

Byju’s Acquisition Expenses - Byju’s spent close to USD 2 billion in order to acquire 4 companies over the past 6 months. These companies include Great Learning for which it paid USD 600 million in a cash-and stock deal along with Toppr for USD 150 million. Byju’s also bought Aakash Educational Services for USD 1 billion in April this year. Gradeup, an online start-up that prepares students for exams serves as Byju’s latest acquisition which will now be called Byju’s Exam prep.

Overseas Expansion – Future School, offered by Byju’s caters to subscribers located in Brazil, Mexico, Indonesia, the U.S., and the UK.

Valuation – Following the approximately USD 150 million Byju’s raised from UBS Group AG, Byju’s saw its valuation amount to USD 16.5 billion. This valuation places it ahead of Paytm which is set to potentially be the country’s largest IPO at USD 2.2 billion.

Prominent Investors – Byju’s has successfully attracted key investors situated across the globe including but not limited to the Chan-Zuckerberg Initiative, Silver Lake Management and Tiger Global Management.

Conclusion

The Coronavirus pandemic has added to Byju’s consumer base which saw 45 million users join at the peak of the pandemic in India last year.

Visit Angel One’s Smart Money portal to learn more about Byju’s IPO date and progress on  Byju’s funding.

Frequently Asked Questions

Q1. What are the four companies acquired by Byju’s in the past 6 months?
A1. Byju’s has acquired Great Learning, Topper, Aakash Educational Services and Gradeup in the past six months.

Q2. Who is Byju’s led by?
A2. Byju’s is led by Byju Raveendran, a former teacher.

Q3. How many students did Byju add to its consumer base at the peak of the coronavirus pandemic last year in India? 
A3. Byju added 45 million students to its consumer base at the height of the coronavirus pandemic in India.

How would you rate this blog?

Comments (0)

Add Comment

Related Blogs

  • icon

    What is Cryptocurrency?

    09 Oct, 2021

    7 min read

    READ MORE
  • icon

    Should you invest in the Paytm IPO?

    31 Jul, 2021

    9 min read

    READ MORE
  • icon

    The Success Story of Pharmeasy

    08 Jul, 2021

    10 min read

    READ MORE
  • icon

    IPO Advantages and Disadvantages

    03 Oct, 2021

    7 min read

    READ MORE
  • icon

    Trading Strategy for...

    24 Jul, 2021

    11 min read

    READ MORE
  • icon

    LIC Seeks to Appoint CFO

    13 Oct, 2021

    6 min read

    READ MORE
  • icon

    All About Commodity Market In India

    25 Jul, 2021

    12 min read

    READ MORE
  • icon

    Introduction of Artificial...

    10 Jul, 2021

    8 min read

    READ MORE
  • icon

    How are Dividends on Stocks Taxed?

    29 Jul, 2021

    8 min read

    READ MORE
  • icon

    Success story – Anil Ambani

    23 Sep, 2021

    6 min read

    READ MORE
  • icon

    What is CMP in the Stock Market?

    20 Jul, 2021

    8 min read

    READ MORE
  • icon

    Tax free Interest Income in India

    22 Aug, 2021

    6 min read

    READ MORE
  • icon

    Clean Science, GR...

    23 Aug, 2021

    6 min read

    READ MORE
  • icon

    IRCTC Stock and Share Split

    03 Dec, 2021

    7 min read

    READ MORE
  • icon

    Forex Trading: A Beginner's Guide

    27 Aug, 2021

    6 min read

    READ MORE
  • icon

    Laurus Labs Share: More...

    23 Jul, 2021

    8 min read

    READ MORE
  • icon

    Success Story of Paytm -...

    02 Aug, 2021

    10 min read

    READ MORE
  • icon

    Stock Trading Bot

    03 Nov, 2021

    7 min read

    READ MORE
  • icon

    What is Capital Gain Tax...

    30 Jul, 2021

    11 min read

    READ MORE
  • icon

    What is Momentum in Stock Trading?

    26 Jul, 2021

    9 min read

    READ MORE
  • icon

    What are ELSS Funds?

    20 Aug, 2021

    8 min read

    READ MORE
  • icon

    Why companies are choosing...

    01 Aug, 2021

    9 min read

    READ MORE
  • icon

    Success Story of Elon...

    28 Jul, 2021

    9 min read

    READ MORE
  • icon

    How to make money in the...

    29 Jun, 2021

    9 min read

    READ MORE
  • icon

    Invesco drags Zee to NCLT

    06 Dec, 2021

    8 min read

    READ MORE
  • icon

    Taxation on Mutual Funds

    04 Oct, 2021

    6 min read

    READ MORE
  • icon

    Top 10 Cryptocurrency to...

    12 Jul, 2021

    10 min read

    READ MORE
  • icon

    Simple trading strategies...

    06 Jul, 2021

    9 min read

    READ MORE
  • icon

    What is Guerrilla Trading?

    01 Nov, 2021

    7 min read

    READ MORE
  • icon

    Commodities Trading: An Overview

    25 Aug, 2021

    9 min read

    READ MORE
  • icon

    Success Story of Jeff...

    27 Jul, 2021

    9 min read

    READ MORE
  • icon

    Understanding Taxation on...

    26 Oct, 2021

    7 min read

    READ MORE
  • icon

    Indian Railways Share...

    24 Sep, 2021

    7 min read

    READ MORE
  • icon

    Stocks to Watch: NMDC,...

    24 Aug, 2021

    5 min read

    READ MORE
  • icon

    Success Story of Vijay Kedia

    21 Oct, 2021

    8 min read

    READ MORE
  • icon

    Paytm IPO

    08 Nov, 2021

    7 min read

    READ MORE
  • icon

    Welfare Loss of Taxation

    28 Oct, 2021

    7 min read

    READ MORE
  • icon

    OYO Success Story:...

    22 Jul, 2021

    8 min read

    READ MORE
  • icon

    An Introduction to Trading...

    10 Nov, 2021

    7 min read

    READ MORE
  • icon

    Ixigo IPO: Ixigo Plans a...

    07 Jul, 2021

    10 min read

    READ MORE
  • icon

    10 Ways to Profit in a Bear Market

    30 Nov, 2021

    8 min read

    READ MORE
  • icon

    Double Taxation Hangs On...

    01 Dec, 2021

    8 min read

    READ MORE
  • icon

    Gold Bond Investment in India

    07 Oct, 2021

    6 min read

    READ MORE
  • icon

    ​​Sugar Stocks Down as Sensex Falls

    29 Oct, 2021

    7 min read

    READ MORE
  • icon

    Go Air IPO: Go Air looks...

    11 Jul, 2021

    11 min read

    READ MORE
  • icon

    Environmental Impact of...

    09 Nov, 2021

    7 min read

    READ MORE
  • icon

    Pair Trading Logic

    26 Aug, 2021

    6 min read

    READ MORE
  • icon

    Margin Trade Funding (MTF)

    21 Aug, 2021

    8 min read

    READ MORE
  • icon

    LIC IPO: All we Know So Far

    05 Oct, 2021

    7 min read

    READ MORE
  • icon

    The Success Story of Jack...

    22 Oct, 2021

    5 min read

    READ MORE
  • icon

    Cryptocurrency Insurance,...

    08 Nov, 2021

    6 min read

    READ MORE
  • icon

    Should you Invest in the...

    30 Aug, 2021

    7 min read

    READ MORE
  • icon

    Should You Invest in...

    10 Oct, 2021

    8 min read

    READ MORE
  • icon

    Is Google a Good Investment?

    11 Nov, 2021

    8 min read

    READ MORE
  • icon

    Investors Walk Away from...

    27 Oct, 2021

    7 min read

    READ MORE
  • icon

    Income Tax in India -...

    02 Oct, 2021

    7 min read

    READ MORE
  • icon

    Exploring top Retirement...

    08 Oct, 2021

    7 min read

    READ MORE
  • icon

    IPO Alert! Devyani...

    09 Jul, 2021

    9 min read

    READ MORE
  • icon

    Blue Chips Fuel Record

    25 Oct, 2021

    6 min read

    READ MORE
  • icon

    Upcoming IPO in Nov-2021

    08 Nov, 2021

    8 min read

    READ MORE

Translate the power of knowledge into action. Open Free* Demat Account

* T&C Apply

Latest Blog

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.


The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

Visit Website
smartbuzz_logo smartbuzz_promotion_img

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.

smartbuzz_logo

The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

smartbuzz_promotion_img

Ready To Trade? Start with

angleone_itrade_img

Subscribe to #SmartSauda Newsletter

Open an account