Bangalore based Byju's plans to raise $150 million from UBS
Byju's is also in talks to raise $200 million more from other investors as part of the same funding round. Both agreed to speak on the condition of anonymity.
Last month, Byju's raised $460 million in a Series F funding round led by MC Global Edtech Investment Holdings LP, valuing the company at over $13 billion.
One97 Communications Ltd, which owns Paytm, is currently India's most successful startup, with a valuation of $16 billion. According to a Bloomberg study on 14 January, UBS Group is also in talks to invest $400 million in Paytm.
“There has been global interest to invest in India’s rapidly growing edtech space, and Byju’s is a clear example of that. With the tailwinds from the pandemic, Byju’s is looking to inorganically grow and enter new segments of test prep and upskilling, where it lacked presence. It may do this through multiple acquisitions, for which it is shoring up funds," the first person cited above said.
Byjus is in advanced talks to buy upskilling platform Great Learning for more than $300 million. However, negotiations are still ongoing, and the contract has not yet been finalised. Great Learning collaborates with universities to provide online courses to help professionals develop their skills.
Byju's announced the acquisition of Aakash Educational Services Ltd (AESL) earlier this month in order to expand its test preparation business and give both companies omnichannel capabilities. The cash-and-stock transaction was valued at nearly $1 billion, making it one of the most expensive in India's burgeoning edtech sector.
Byju's raised over $1.18 billion in FY21 alone from investors such as Mary Meeker's venture capital firm Bond Capital; DST Global; US investment firms BlackRock and T. Rowe Price; Silver Lake and MC Global; and Mary Meeker's venture capital firm Bond Capital.
Byju's Future School, the company's one-on-one live tutoring platform, launched in Latin America and Southeast Asia in April 2021. Byju's partnered with WhiteHat Jr, which it had acquired in 2019, for its global launch, to provide customised learning in a variety of subjects for students in kindergarten through eighth grade (K-8).
BYJU’S has been backed by strong and prominent investors like Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Tencent, Sequoia Capital, Sofina, Verlinvest, IFC, Aarin Capital, TimesInternet, Lightspeed Ventures, Tiger Global, Owl Ventures & Qatar Investment Authority.