New Delhi: Indian edtech giant, Byju’s, has recently secured USD 250 million (approximately Rs 2,000 crore) in a fresh funding round from US-based investment firm Davidson Kempner Capital Management, according to media reports. The development comes in the wake of the Directorate of Enforcement (ED) officials searching the premises of the edtech unicorn. The federal financial investigation agency has been scrutinizing Byju’s compliance with the Foreign Exchange Management Act (FEMA) for the years 2011-23.
Despite the ongoing investigation, the company has been able to maintain its valuation of $22 billion. However, the latest funding round is reportedly tied to the public listing of its subsidiary, Aakash Educational Services, and is structured heavily. Media reports suggest that the company is in advanced talks with a number of global investors, including sovereign wealth funds in West Asia, to finalize the funding round.
Byju’s has established itself as one of India’s most valuable edtech companies, with its learning app boasting over 100 million users. The company has been expanding its product offerings and acquisitions to strengthen its presence in the education technology space. Byju’s had acquired Aakash Educational Services, a test preparation provider, for nearly $1 billion earlier this year.
Despite facing regulatory hurdles and increased competition in the edtech market, Byju’s has been able to maintain its leading position in the industry. The company has also been exploring international markets, including the United States and Europe, for potential expansion opportunities.
Byju’s latest funding round is a testament to its investors’ confidence in the company’s long-term prospects, despite the ongoing regulatory challenges. The funds raised are expected to be used for product development, acquisitions, and international expansion. With its innovative and adaptive approach to learning, Byju’s is well-positioned to capitalize on the growing demand for education technology solutions in India and beyond.
