Byju's raises $250 mn from QIA, existing investors at flat $22 bn valuation
The fundraise comes a week after the company said it will be laying off 2,500 employees in a cost-cutting initiative
October 17, 2022 / 01:58 PM IST
File image of Byju's founder Byju Raveendran.
Edtech unicorn Byju's has raised $250 million in a fresh funding round from existing investors including Qatar Investment Authority (QIA) in a flat round at $22 billion, a week after announcing over 2,500 layoffs.
The company was offered a valuation of $11-12 billion by new investors after its results were out last month, but Byju's did not raise money at that valuation, a person directly aware of Byju's fundraising plans told Moneycontrol.
Over the last 12 months, secondary sales of Byju's shares have happened at a valuation between $16 and $17 billion, while all primary fundraises since March this year have happened at a valuation of $22 billion, the person quoted above said. In this round, a little more than $250 million was raised in primary, the person added.
Secondary sales typically happen at a discount. Byju's did not comment. Moneycontrol couldn't identify the other investors in the round.
“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," said Byju Raveendran, co-founder and CEO (chief executive officer) Byju's.
"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,” he added.
The fundraise comes a month after Raveendran in an interview to Moneycontrol had said that he can raise $300 million in a week, even in an environment like this. He had also said that about $300 million from investors Oxshott and Sumeru Ventures, who had committed funding as a part of its previous two rounds, was not going to come due to uncertain macroeconomic conditions.
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