Indian Edtech platform Byju has raised $250 million in a new funding round from existing investors including Qatar Investment Authority (QIA), as it seeks to improve the market downturn that forced it to postpone the initial public offering (IPO).
The new funding raised by the startup has increased its valuation to $22 billion, the same figure at which it raised a financing round in March this year.
Speaking on the recent fundraising, Byju Raveendran, co-founder and Chief Executive Officer (CEO) of Byju said, “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.
“Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth, and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability.”
Amid a global slowdown that affected most companies this year which led to the laying off of staff, Byju was no exemption, as the global inflation affected its market downturn, which prompted the startup to begin the laying off of around 2500 of its employees in the next six months.
It disclosed that the layoff of its employees will be done in phases which will be a big step towards cost-cutting and being a profitable company by March 2023, also achieving better unit economics which will prepare the ground for its initial public offering (IPO).
The edtech firm has faced intense scrutiny over its accounting practices in recent months which it disclosed as “challenging” as it delayed the filing of its audited accounts.
Byju raised $1.2 billion in a term B loan last November for international expansion. The startup plans to acquire US edtech firm 2U as well, but those plans have been stalled even as the company was closing a financing arrangement for the potential deal, Investors King understands.
