Byju's, an Indian edtech giant, is reportedly facing difficulty in securing USD 800 million in funding as valuations are being weighed down by the global economy as well as the technology downturn.
A Byju's spokeswoman stated that investors like Sumeru Ventures and Oxshott haven't transferred around USD 250 million of the intended amount yet, and it is likely to be delivered by August end. However, Byju Raveendran, the Founder of Byju’s has finished bringing around USD 400 million into it as part of the deal.
This funding delay for the most valuable company in India is likely to rekindle concerns about the nation's consumer technology sector, where the public valuations of key competitors like Paytm and Zomato Ltd. have fallen steeply since their stock market debuts.
Byju's would have been valued at USD 22 billion if the fundraising had been successful, and Raveendran's contribution presented an exceptional case of an Indian entrepreneur taking part in a venture capital round at a late-stage startup.
It is worth mentioning here that investors like Silver Lake Management, Bond Capital, Naspers Ltd., and Tiger Global Management are supporting the international expansion efforts of Byju's. The firm, however, has delayed payments to acquire test-preparation service Aakash Educational Services initially, while also proposing more than USD 1 billion to acquire 2U Inc., a US-listed edtech company.
For those unaware 42-year-old Byju Raveendran launched this company in 2015. Byju's is the biggest of a group of startups that have flourished over the past ten years thanks to the growth of mobile connections in India and foreign investment. The parent firm of Byju's is formally known as Think & Learn Pvt.
The founder group, including a few of their family members, as well as the senior management and staff, currently owns more than 25% of the company, and once the apparent funding round is over, this percentage is anticipated to rise to reach 29%.
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