[Funding Alert] This Edtech Start-Up Is Now the Third Most Valued Indian Unicorn After Paytm, OYO Byju's, which turned profitable on a full-year basis in the last financial year, said it has raised a fresh round of funding. The investment is touted to be $200 million at a valuation of $8 billion.
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Byju's has received a fresh round of funding from US-based Tiger Global Management, the Indian edtech unicorn said on Thursday. While the company did not disclose the funding amount, it is touted to be $200 million, a person familiar with the matter told Entrepreneur India.
This investment was made at a valuation of $8 billion, the person said.
"This partnership is both a validation of the impact created by us so far and a vote of confidence for our long term vision," Byju Raveendran, founder and chief executive officer, said in a statement.
Founded in 2011, the company has grown rapidly over the years, and despite competition, has established itself as a leader in the space.
"Byju's has emerged as the leader in the Indian education-tech sector. They are pioneering technology shaping the future of learning for millions of school students in India," Scott Shleifer, partner at Tiger Global, said.
The Bengaluru-based firm nearly tripled its revenue to INR 1,480 crore in the last financial year.
It also became one of the few celebrated names in the start-up ecosystem to turn profitable on a full-year basis, at a time when skyhigh valuations and lack of a definitive path to making money has spooked entrepreneurs and investors alike.
For the current fiscal year, Byju's said it is on track to more than double revenue to INR 3000 crore.
On a user level, the company said it had seen "tremendous growth" with over 42 million registered users and 3 million paid subscribers, while the annual renewal rates are as high as 85 per cent.
With the launch of its product for students between Grades 1 and 3 in 2019, Byju's now offers programmes for all grades between 1 and 12.
The company said it was working on launching programmes in regional languages become more accessible and penetrate deeper into various parts of India. Byju's is also in the process of launching an online tutoring feature in the coming months.
"While these are early days on how technology can enable better learning, there is tremendous potential in this segment to create a highly scalable and sustainable model that can equip and prepare the current generation for the unseen jobs of tomorrow," Byju Raveendran said.