Byju's to raise $400-600 million and plans to file IPO in 2022

Byju's went ahead of the second-most valuable startup of the country, Paytm, after raising around $150 million from the UBS Group AG.

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Indian edtech company Byju's is in talks to raise $400-600 million, and after that, they are looking forward to filing documents for Initial Public Offerings (IPO) next year. Headquartered in Bengaluru, India's most valuable startup might close its pre-IPO fundraising in upcoming weeks at the valuation of $21 billion.

As per the reports, the funds raised through the fundraising will be split equally into equity and debt. The founder of Byju's, Raveendran, is planning to file its IPO documents by the second quarter of 2022, and they were looking at the timeline of 12 to 24 months. Valuation of $40 billion to $50 billion is in the discussion by the bankers and the company, but it will depend upon the investor demand and financial result.

The banks that are in talks are JP Morgan Chase & Co., Citigroup Inc. and Morgan Stanley these are the same banks that are involved in current fundraising. The investment bankers have suggested few alternatives to Byju's, such as a merger with a special purpose acquisition company (SPAC) or investing in IPO in the US. 

Byju's went ahead of the second-most valuable startup of the country, Paytm, after raising around $150 million from the UBS Group AG. Initially known as Think & Learn, Byju's has eminent global investors, which includes Naspers, Silver Lake Management, Tiger Global Management and Mark Zuckerberg's Chan-Zuckerberg. The company has the potential to become a global leader in the edtech sector, and its current target valuation of $21 billion is achievable as per the sources.

Byju's has been on an acquisition spree the previous year, and the company acquired startups offering professional learning courses, coding lessons and test prep courses/classes for competitive exams. Reportedly, Raveendran is eyeing to achieve the target of $100 billion through revenue by March-end 2022.