Byju's is one of the most prominent decacorns in India. It has changed the concept of digital learning through its innovation and well-timed experimentation. Recently, the digital learning platform has entered the live-tutoring arena.
The platform offers a variety of learning courses to students of classes I - XII. In addition, Byju's also offers online courses to aspirants of competitive and entrance examinations. Accordingly, Byju’s has occupied a large market share and emerged as one of the pioneers in online education over the years.
Byju's IPO Objectives
- Meeting growth and expansion purpose
- Cater to working capital requirements
- Meeting expenses of share issuance
- Account for general corporate purposes
Byju's IPO - Details
Byju’s is planning to launch its initial public offering in the next 18 to 24 months. Once the company releases more information about this upcoming IPO, we will update the page instantly.
Why Should You Invest in Byju's?
Byju’s is a leading player in the digital learning space. Since its inception, this learning platform has garnered a lot of traction to develop a massive loyal customer base.
Its robust number of subscribers and smart use of innovations add to its growth. This offers upsides regarding its growth and earnings prospects, which could allow investors to realise significant returns on their investments.
That said, investors should consider studying its scope and limitation in detail to make an informed choice. This will help them decide its merit by the time the company rolls out more IPO details and its timeline.
IPO Financials
| Financial year | Total Revenue | Total Assets |
|---|---|---|
| As of 30 June 2020 | - | - |
| March 2020 | - | - |
| March 2019 | - | - |
| March 2018 | - | - |
Know before investing
Strengths
4This digital learning platform offers multifarious learning solutions in regional languages. The learning materials and online classes are available in different formats, including theories, stories, and visuals. In addition, students have the option to choose from multiple learnings resources.
Byju’s app boasts high student engagement. Its fine-tuned study solutions and the enhanced interface makes students come back to the digital portal more often. This also helps in customer retention.
In the last couple of years, the company has maintained a strong financial position. This continues to allow this learning platform to boost its reach and experiment with its offerings.
Byju’s smart acquisition strategy offers it an edge over its competitors. Recently, this learning platform has acquired White Hat Jr. for a whopping $300 million. Such a move now allows Byju’s to offer coding classes to its students while at the same time it has helped the platform eliminate one of its biggest competitors.
Risks
4Data breaches and privacy threats are the biggest concerns for Byju’s, and they must upgrade their system to minimise risks.
The company’s business model can be easily imitated by new entrants. This will dilute the unique appeal Byju’s has managed to create in the market so far.
More digital learning platforms are coming into existence as new companies are trying to ride this newfound interest in online education. The hike in the number of market competitors is bound to limit Byju’s market share. It also increases the threat of losing existing customers to newer and more innovative competitors.
Byju’s struggles with improper inventory management. Its return on investment is also low because of high expenses.
Peer Comparison
| Market Peers | Revenue (in million) | Sector P/E | Market Cap | Dividend Yield |
|---|---|---|---|---|
| Vedantu | $60 million | - | - | - |
| Unacademy | $11.7 million | - | - | - |
| Toppr | $7.9 million | - | - | - |
| TOPPER | $73 million | - | - | - |
| Khan Academy | $43.7 million | - | - | - |
| Meritnation | $60 million | - | - | - |
| Extramarks | $45 million | - | - | - |
| Embibe | $1.5 million | - | - | - |
| Qriyo | $ < 1 million | - | - | - |
| PLANCESS | $ < 1 million | - | - | - |
