Exclusive: Byju’s raises around $460 Mn led by MC Global Edtech Investment

Edtech leader Byju’s has raised Rs 3,328.23 crore or close to $460 million in its ongoing Series F round led by MC Global Edtech Investment Holdings LP. While this is the maiden investment round for the Bengaluru-based company in 2021, it has gathered a little over $1 billion in the ongoing fiscal year or FY21.

The company has approved the allotment of 1,40,233 Series F CCPS  at a face value of Rs 10 and a premium of Rs 2,37,326 per share to raise the sum, regulatory filings show.

Last week, Entrackr had exclusively reported that Byju’s was in the final stage to raise $600-700 million in a new tranche that would push its valuation to nearly $15 billion.

The fresh tranche was led by MC Global Edtech Investment Holdings LP which invested Rs 1,628 crore or $224 million, almost half of the total tranche. A total of nine investors have participated in the round in which B Capital, with its global and Asia subsidiaries, has put in around Rs 560 crore or $77 million. 

Asset management firm Baron Emerging Market Fund and Baron Global Advantage Fund collectively invested Rs 581 crore or $80 million. New York-based hedge fund XN Exponent Holdings, run by Gaurav Kapadia, has put in Rs 298 crore or $41.5 million. Arison Holdings and TCDS India LP have infused Rs 108 crore or $15 million and Rs 104 crore or $14 million respectively.

Following this tranche, the collective holding of the promoters’ group, which includes Byju Raveendran and family, has been diluted to 26.09%. As per Fintrackr’s estimates, this tranche has valued the company in the range of $13.7-$14 billion. 

It's likely that Byju’s will receive over $150 million more in this tranche. Hence, its valuation would also grow and could go up to $15 billion.

Byju’s is yet to respond to Entrackr’s queries on details. 

According to sources aware of the transaction, Byju’s will use the proceeds to finance acquisitions. While it’s all set to acquire Akaash Educational Services, it is also in its last leg to acquire Toppr for about $150 million.

Byju’s other major acquisitions include US-based Osmo for $120 million in January 2019 and WhiteHat Jr in a $300 million all-cash deal in August 2020. So far, the company has raised around $2.5 billion from the likes of Sequoia Capital, DST Global, Tiger Global, Mark Zuckerberg's Chan Zuckerberg Initiative and Bond Capital.

For the fiscal year 2020, Byju’s claimed to have crossed the Rs 2,800 crore revenue mark. It’s yet to file an annual financial statement for FY20 with the Ministry of Corporate Affairs or MCA. Until September 2020, the company had 4.5 million paid users on the platform.

Update: The headline and story has been updated to reflect that Byju's raised around $460 million ($450 million mentioned in the earlier version ) in this tranche. The error is regretted.