Byju's, India's top edtech startup, is in talks with at least three US-based special-purpose acquisition companies (SPACs) with the intent to go public through merger with one of them within a month, a report said on January 31.
The sources cited in the Bloomberg report claimed that Byju's is holding negotiations with Michael Dell’s MSD Acquisition Corp, Michael Klein’s Churchill Capital and Hollywood veteran Harry Sloan who has been making major SPAC investments.
Another likely contender, Altimeter Capital Management, is acting cautiously before any potential offer, the persons familiar with the development told the publication.
If the talks succeed, Byju's could go public via a merger in a period of three to four weeks, they said.
Byju's is targeting a SPAC merger rather than directly taking the initial public offering (IPO) route as it envisages greater value in bringing US investors and partners on board, the sources claimed, adding that the company is also considering the option of raising $750 million to $1 billion through pre-IPO funding.
In an interaction with Moneycontrol last year, Byju Raveendran, founder and chief executive officer of Byju’s said that the company was considering a 12-18 months timeline for an IPO.
The company had, in 2021, spent over $2 billion in acquisitions which were aimed at international expansion. It had acquired upskilling platform Great Learning, US-based reading platform Epic, educational games maker Osmo, coding startup WhiteHat Jr and offline test preparation firm Aakash Educational Services Limited. Aakash alone was bought for a whopping $1 billion.Notably, Byju’s, started in 2015, has now registered over 115 million students cumulatively learning from the app and 7 million annual paid subscriptions.