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Wednesday, November 29, 2023

Byju’s may acquire online tutoring firm Chegg in multi-billion dollar deal

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Byju’s has spent the majority of its recent capital on new acquisitions in India and other parts of the world. It is now considering acquiring Chegg, a California-based online tutoring startup.

Despite the worldwide market slump, Byju’s, which has spent the majority of its recent investment on new purchases in India and elsewhere, has no plans to wind down its buying spree anytime soon. Byju Raveendran, the company’s founder and CEO, believes that the next 12 months will be the finest moment to buy firms, and that Byju’s is looking to make “multi-billion-dollar” purchases all over the world.

According to insiders, Byju’s has spent the majority of its recent funds on fresh acquisitions in India and around the world, and is currently considering a buyout of California-based online teaching startup Chegg. Raveendran would not confirm whether talks to buy Chegg have taken place, but he did say that the next 12 months will be the optimum time to buy businesses.

He remarked, “We’re looking at multibillion-dollar deals. That is why we have access to various forms of capital. We’re looking into purchases in the United States,”

Byju’s creator and CEO, Byju Raveendran, said in March that he was putting $400 million of his own money into the company as part of a $800 million fundraising round. The deal was similar to one completed by Oyo founder Ritesh Agarwal in 2019. In an unusual bulk-up of his shares, he bought back Sequoia Capital and Lightspeed Venture Partners’ holdings in the firm. However, sources claim that Raveendran has yet to acquire loans to enable him raise his stake in the company.

Raveendran said that official promises have been received from a number of lenders, but that negotiations over loan terms have caused delays in concluding the purchase.

Raveendran stated, without providing any other information, “It’s mostly from US banks and huge institutions, including some well-known names. There is a promise for more than $400 million.”

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