Edtech Giant BYJU's Plans To Raise $600 Million Ahead Of IPO Launch In 2022: Report

Led by former teacher Byju Raveendran, the edtech start-up is looking to file the initial IPO documents by second quarter of next year, soon after the close of its financial year in March

BYJU'S IPO Plans | File Image

New Delhi: Online education company Byju’s is in discussions to raise between $400-$600 million ahead of its Initial Public Offering (IPO) next year. The Bangalore-headquartered company is expected to close the pre-IPO fundraising in a few weeks at a valuation of about $21 billion, according to Bloomberg sources.

The fundraising is expected to be split between equity and debt. Led by former teacher Byju's Raveendran, the edtech start-up is looking to file the initial IPO documents by second quarter of next year, soon after the close of its financial year in March, according to Bloomberg.

The company was considering a timeline of 12 to 24 months for the IPO. Along with the bankers, Byjus are expecting a valuation of $40 billion to $50 billion, although the final figure will be arrived based on the financial results and investor demand, said sources.

Several banks including Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co are in talks with the company. The same banks are involved in the current fundraising.

According to the report, investment bankers have also suggested alternative routed including IPO in the US or a merger with a special purpose acquisition company, or SPAC. However, these options hold lesser chances than a listing in India.

In April, Byju's valuation stood at $16.5 billion after it raised around $150 million from UBS Group AG, according to Bloomberg News. This made it the second-most valuable startup in the country after digital payments provider Paytm, according to the market research firm CB Insights.

On Tuesday, Byju announced acquisition of online exam preparation platform Gradeup for an undisclosed amount. This fresh acquisition will strengthen Byju’s presence in the exam-preparation category.

The company said that the exam preparation platform will be rebranded as Byju’s Exam Prep and will cater to over 150 exams across 25 categories covering government jobs and and PG entrance exams such as IAS, GATE, CAT, bank PO/ clerk, defence and UGC-NET.