Byju’s on Monday said it has received $250 million in fresh funding from backers as the Indian edtech giant tries to navigate a market downturn that forced the company to extend its initial public offering.
The new funding puts the Bengaluru-headquartered startup at $22 billion, the same figure it raised in a funding round in March this year, a person familiar with the matter said.
The company, which is an Indian startup, declined to comment on the valuation but said Qatar Investment Authority, the Qatari sovereign fund, was involved in the round. He did not identify other supporters. Byju Raveendran, Byju’s founder and CEO, told TechCrunch in an earlier interview that he was participating with an existing sovereign fund to set up a new round of startups.
Monday’s funding announcement follows Baiju’s plan to eliminate 5% of its workforce, or about 2,500 roles across multiple departments, and cut its marketing budget to improve finances and return to profitability by the end of the current financial year.
Baiju caters to students pursuing undergraduate and graduate courses, and in recent years has expanded its catalog to serve students from all schools. Teachers on the Baiju app solve complex problems using real-life objects like pizza and cake. The startup says more than 150 million students use its services.
Bijus has spent more than $2.5 billion in the past two years as the Indian company expands and expands its presence in many international markets.
“Baiju is now in that sweet spot of its growth story,” Ravendran (pictured above) said in a statement today.
“This means that the capital we invest in our business now will deliver profitable growth and create lasting social impact. Regardless of adverse macroeconomic conditions, 2022-23 is set to be our best year yet in terms of revenue, growth and profitability. The continued support of our valued investors will once again repeat the impact we have made so far.” It will prove, and prove, our way to profitability.
Baiju has moved to clear its debts and other balance sheets in recent months. TechCrunch previously reported on TechCrunch.
It generated a total revenue of $1.258 billion (undisclosed) in the fiscal year ended in March this year. Between April and July, the startup reported $570 million in revenue. It counts Baiju Process Ventures, Chan Zuckerberg Initiative, Sequoia Capital India, Silver Lake, Owl Ventures, UBS and BlackRock among its backers and has raised around $6 billion to date.
