Taking a cue from the boom of tech space in this country, Byjus’s, one of India’s leading education portals, plans to accelerate its public offering. The prominent reason behind it seems to be the intention of making the most of the prospects of India’s tech space.
That said, Byju’s intends to accelerate its public offering plan to next year. In fact, sources indicate that the company could file its DRHP by the Q2 of next fiscal year.
On that note, let us dive deeper into this development.
Byju’s IPO Timeline and the Reason Behind the Haste – A Sneak Peak
Previously, Byju’s was aiming at a 12–24-month timeline for its IPO. However, to partake in the upward phase of tech space, the company is now planning to launch its public offer sooner than expected. Byju’s is yet to shed any light on the exact IPO schedule for now.
The country’s tech space continues to soar. Public offerings have helped companies raise funds as per their set target and have also prompted venture capital firms to boost their investment in the country.
This represents itself as a lucrative opportunity for tech-based companies to benefit from the current boom phase in terms of exposure and earnings.
Plans of Fundraising and More
Note that Byju’s has been planning to raise funds between the range of $400 million to $600 million and then proceed to speed up its public offer.
It is expected that the company based in Bangalore could conclude its pre-IPO round of fundraising in a couple of weeks and at a valuation of nearly $21 billion. Also, sources suggest that the fundraising could be split evenly between debt and equity.
Though Byju’s and its team of bankers are in discussion about a valuation of $40-50 billion, the final worth will depend on its financials and investors’ demand. Note that it is speculated that entities such as JPMorgan Chase & Co., Morgan Stanley, and Citigroup Inc. are involved in this current fundraising and could be appointed as Byju’s IPO lead managers.
Key Highlights of Byju’s
Amidst this raging pandemic, Byju’s has achieved these feats:
- It has carried out successful acquisitions of several startups that offer coding lessons, competitive test prep classes, and ones that extend professional learning courses.
- Byju’s added 45 million students during the peak pandemic phase.
- By July, it had crossed the 100 million users on its app.
- Nearly 6.5 million users are paid subscribers.
- It enjoys an annual renewal rate of 86%
Collectively, these pointers indicate a strong market footing of this education provider and surging popularity among students.
Over the years, Byjus’s has been recognised as one of the most valuable startups and leading online education providers in the country. It has the potential to emerge as a global leader when it comes to the field of education technology.
The current geopolitical situation also seems to be working out in its favour. For instance, Beijing’s latest reforms have imposed severe restrictions on such setups in China. This indeed has drawn the attention of high-profile investors towards platforms like Byju’s, giving it the opportunity to achieve its new valuation target of $21 billion.
This makes the company a lucrative investment opportunity for investors as well. That said, it is still too early to speculate the prospect of the company. Hence, interested investors should keep an eye on its IPO development and related news to build a reliable opinion of the company and its public offering.
Frequently Asked Questions
- What is Byju’s target revenue for 2022?
Byju’s has targeted Rs. 100 billion as its revenue for the year that will end in March 2021.
- Who is the registrar of Byju’s IPO?
Byju’s is yet to share information regarding this.
- Has Byju’s filed its DRHP?
No, Byju’s is yet to file its DRHP. However, it is expected that Byju’s will file papers with SEBI in the second quarter of FY21.