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One of India's most valuable unicorns, Byju's has raised another $250 million in a new funding round from its existing investors including the Qatar Investment Authority.
“Byju's is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favor. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact," said Byju Raveendran, CEO of Byju's.
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According to anonymous sources, new investors were offering Byju's a valuation of $11-12 billion after its disappointing results were disclosed, but Byju's was unwilling to raise money at that valuation. Moreover, the same source stated that Byju's secondary sale was happening at a valuation of $16-17 billion, significantly lower than the existing valuation of $22 billion.
However, Byju's has stated that irrespective of the current macroeconomic conditions, 2022-23 will be its best year in terms of revenue, growth, and profitability.
Byju's current fundraising is a testament that it has the support of investors even though a funding winter has arrived. A report stated that the funding raised by Indian startups declined by 57% in the quarter that ended in September 2022.
However, Byju's, after posting over Rs 4,000 crores in losses, has decided to focus on profitability as it recently announced the layoff of 2,500 employees or 5% of its headcount. Moreover, the company has also announced that it will consolidate all its K10 India units into a single unit to leverage its synergies in a bid to turn profitable.
In September 2022, it was announced that Byju's was delaying its plans to go public by 9-12 months while citing adverse macroeconomic conditions.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
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