Education technology start-up Byju’s has been a massive success; the company has been growing at 100% for the last three years and is on target to reach a revenue of 1,400 crore ₹ for the year ending March 2019. But the fact that pays most tribute to its astounding success is its valuation.
Byju’s had a valuation of 1 billion $ till early last year, then in December of 2018, it raised money at a valuation of 3.6 billion $, and just a few months later it has just raised additional funding of 31 million $ (around 214 crore ₹) at an impressive valuation of 5.4 billion $ (37,155 crore ₹) led by US based equity investor General Atlantic and Chinese internet giant Tencent. This valuation makes it India’s third most valuable start-up behind digital payments firm Paytm and cab hailing platform Ola. The chart depicts Flipkart in the # 1 position, however, in August 2018, US based retail chain Walmart acquired a 77% controlling stake in Flipkart for 16 Billion $ and hence it no longer qualifies as an Indian company.
The flagship product of the Bengaluru based Byju’s is a smart phone app that explains educational content visually, using digital animations and moving illustrations, all embedded within short videos and primarily caters from classes 4th to 12th . However, with this new funding, Byju’s is looking to expand its bouquet of products and cater to classes 1st to 3rd as well and is also looking to expand into international markets.
So far, Byju’s has raised close to 800 million $ in funding over nine rounds and seems to be in the right space as the global online education market is projected to reach a total market size of 286.62 Billion $ by 2023, increasing from 159.52 Billion $ in 2017.