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Singapore parent invests $49M in edtech giant Byju’s

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Byju’s is raising $49 million from its Singapore parent company, Byju’s Holdings 1 Pte Ltd. The edtech giant had earlier secured $800 million from Byju Raveendran, BlackRock, Vitruvian Ventures, among others.

BYJU’S, India’s most valuable edtech startup, is raising $49 million from its Singapore parent company, Byju’s Holdings 1 Pte Ltd. According to the most recent regulatory filings by General Atlantic-backed BYJU’S, the edtech behemoth received $49.4 million (INR 403.8 crore) from its Singapore holding entity.

Byju’s Holdings 1 Pte Ltd has been allocated 11,335 Series F Compulsory Convertible Cumulative Preferences at an issue price of INR 3.5 Lakh each.  This is the first installment of a $160 million (INR 1,305 crore) capital raise approved by the edtech behemoth’s board of directors.

BYJU’S has another Singapore-based entity, Byju’s Investments Pte. Ltd., in addition to Byju’s Holding 1 Pte Ltd. Byju’s Investments Pte. Ltd. also contributed nearly $232 million (INR 1,894 crore) to the edtech startup earlier this year.

The latest development comes as the startup prepares to release its much-anticipated FY21 financial results. Due to its high cash burn in WhiteHat Jr, the company’s losses nearly doubled to INR 4,588 Cr in FY21.

In FY20, the company reported a consolidated loss of INR 231.6 Cr. The total income of Byju Raveendran’s edtech startup fell 3.3% to INR 2,428.3 Cr in FY21 from INR 2,511.7 Cr the previous year, owing primarily to a change in revenue recognition for its streaming services. Previously, BYJU’S calculated its revenue from these streaming services at the start of the contract.

Total expenses for the edtech behemoth increased 144.5% to INR 7,027.4 Cr from INR 2,873 Cr in FY20, owing to high marketing and acquisition costs. The company spent INR 2,251 Cr on marketing, accounting for 32% of total expenses incurred by BYJU’s in FY21.

The company has raised $800 million at a valuation of $22 billion. The round was led by Byju Raveendran himself, who committed $400 million to increase his stake in the company to 25%. BlackRock and Vitruvian Ventures, among others, participated in the round.

Sumeru Ventures, which also participated in the $800 million round, has yet to make a payment to the company.

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