Indian edtech company Byju’s has raised a whopping $700 million in its latest funding round, led by new investors like Blackstone Group and T Rowe Price. The company, which offers online learning and test preparation services, has become one of the most valuable edtech startups in the world. And has a valuation of $15 billion.
This latest funding round saw participation from existing investors like Silver Lake, Tiger Global, and General Atlantic, among others. Byju’s plans to use the funds to expand its product offerings, including launching new learning programs and adding more students to its platform. The company also plans to expand its global footprint, especially in the United States and other English-speaking countries.
Byju’s has been on a fundraising spree since the pandemic hit, as the shift to online learning has boosted demand for its services. The company raised over $1.3 billion last year alone, and has now raised a total of $2.3 billion in funding since its inception in 2011.
Byju Raveendran, the founder and CEO of Byju’s, said in a statement, “We are excited to welcome Blackstone and T Rowe Price as our partners. This investment will help us accelerate our long-term vision of providing affordable, high-quality education to students globally.”
Byju’s has seen explosive growth over the past few years, with its user base surging from 40 million in March 2019 to over 100 million now. The company’s revenue has also grown rapidly, reaching $100 million in the fiscal year ending in March 2018 and $300 million in the fiscal year ending in March 2020.
The edtech sector has been one of the biggest beneficiaries of the pandemic, as schools and colleges were forced to shut down and switch to online learning. The sector has seen a surge in funding globally. With companies like Byju’s, Coursera, and Udemy all raising huge sums of money in recent months.
Despite the influx of capital, the sector faces significant challenges, including the need to ensure that students have access to high-quality education, especially in underprivileged areas. Byju’s has been actively working on addressing these challenges, partnering with governments and non-profits to provide free access to its platform for disadvantaged students.