Silver Lake invests in Indian startup Byju's at US$10.8b valuation

[MUMBAI] Private equity giant Silver Lake led a US$500 million funding round for Byju's that valued the Indian online education platform at around US$10.8 billion, a person familiar with the matter said.

Existing backers Tiger Global, General Atlantic and Owl Ventures also took part in the latest funding round, according to the person, who asked not to be named discussing a private deal.

The startup remains locked in negotiations over several other rounds of financing. Bloomberg News has reported that Byju's is close to getting about US$400 million from Yuri Milner's DST Global though that funding has yet to get finalised, the person added.

The frenetic deal activity signals huge investor appetite for India's edtech startups as the country's pandemic escalates, shutting schools and prompting parents, teachers and students to seek out online resources.

Byju's, whose investors include Facebook founder Mark Zuckerberg's Chan Zuckerberg Initiative, Naspers and Tiger Global Management, simplifies math and science concepts for K-12 students through games and videos.

It was founded by Byju Raveendran, a former teacher and son of educators, who conceived the smartphone app in 2011. In a country that places a premium on education, he launched the app just as smartphones were becoming ubiquitous.

A NEWSLETTER FOR YOU

Monday, 3.30 pm

Garage

The hottest news on all things startup and tech to kickstart your week.

Sign Up

The app caters to students from kindergarten through 12th grade and has over 64 million registered users and over 4.2 million paid subscribers. It's adding over 300,000 new subscribers every month.

Byju's doubled revenues in the year ended March 2020 to 28 billion rupees (S$520.5 million) from the previous financial year and is profitable - a rarity for Indian startups.

BLOOMBERG