Ed-tech major Think and Learn, which owns and operates K-12 learning app BYJU’S said it has raised $200 million from Tiger Global Management, a New York-based hedge fund. This round of funding takes the valuation of the Bengaluru-headquartered unicorn to about $8 billion, according to market analysts.
In July 2019, BYJU’s valuation had surged to $5.5 billion in its ongoing Series F round, significantly higher than the $3.5 billion valuation pegged in December 2018. The spike in BYJU’s valuation comes from its entry into the US market, according to investors.
“We are happy to partner with a strong investor like Tiger Global Management. They share our sense of purpose and this partnership will advance our long term vision of creating an impact by changing the way students learn. This partnership is both a validation of the impact created by us so far and a vote of confidence for our long term vision,” said BYJU’S Raveendran, founder & CEO in a statement.
Raveendran said BYJU’s was working on launching programmes in vernacular languages to make it accessible for learners in tier 2 and 3 cities. Additionally, the start-up will launch BYJU’S Online Tutoring in the coming months.
In 2019, BYJU’S had launched The Disney, BYJU’S Early Learn App, for students in classes 1-3, which completed their learning offerings from grades 1-12.
BYJU’s is capitalizing on the potential in the online learning segment to create a highly scalable and sustainable model that can equip and prepare the current generation for the jobs of tomorrow. “Learning is a space where sustainable long-term growth translates to a larger good. This space is, therefore, ripe for innovation to transform the future,” said Raveendran.
Over the last 12 month, BYJU’S claims to have over 42 million registered users and 3 million paid subscribers on its app, from both rural and urban India. According to the company, the average number of minutes a student spends on the app has increased from 64 minutes to 71 minutes per day over the last year and the annual renewal rates are as high as 85%.
“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. We are excited to support BYJU’S and the team,” added Scott Shleifer, Partner, Tiger Global.
BYJU’S also claims to have tripled its revenue from ₹520 crore to ₹1,480 crore in FY18-19 and turned profitable on a full-year basis. The company is on track to double revenues to ₹3,000 crore in the current financial year, according to Raveendran.
India’s online learning market is expected to more than double to $5.7 billion by 2020, according to the government-backed India Brand Equity Foundation.
Source: Livemint
