Just four months after India-based online education startup Byju’s raised $75 million from Sequoia Capital and Sofina, the company has announced plans to raise an additional $50 million to further its international expansion through acquisitions.
In an effort to inspire a lifelong love of learning in all students, education startup Byju’s was created to offer high quality, engaging, and accessible education to all. Today the company has grown to become the largest education technology company within India.
The company’s Learning App is already seeing growth in India with a monthly increase of 15%, with the revenue for June 2016 standing at $5.56 million. The app has more than five million downloads and over 200,000 paid subscribers, with 30,000 having been added in the last month.
In an official statement, the company noted that the average student spends 40 minutes on the app per day:
“We are seeing strong inbound interest from multiple investors over the last few months, thanks to our explosive growth. We are keen to bring in partners who will catalyse the next stage for us. On the other hand, we are humbled by the rising popularity and high engagement for our product with 90-percent annual renewal rates from the students. We are constantly innovating the way in which we make learning accessible, effective, engaging and personalised,” said Byju Raveendran, Founder and CEO of BYJU’s Learning App.
Founded in 2011, the startup, which is based out of Bengaluru, provides learning programs for students in Class VI-XII as well as preparation programs for competitive exams such as CAT, IAS, GRE and GMAT, writes Sanghamitra Kar for Your Story. The firm converts lessons into video format and uses graphics in order to explain concepts and make learning both contextual and visual instead of theoretical, writes Avik Dasi for The Times of India.
Investor interest in the educator sector is on the rise in India. By March 31, education technology companies in the country had raised a total of $85 million, $75 million of which was raised by Byju.
The previous fundraising endeavor of the startup is one of the largest within the education sector, estimated to be worth $100 million overall. Those funds were put to use toward talent acquisitions, expansion of its product portfolio, and to enter global markets. Currently, the startup is located in India and the Middle East with plans to enter the United States, the United Kingdom, and the Commonwealth by the end of the year.
To date, the company has raised $95 million across three rounds of financing, and includes Manipal Group and Aarin Capital, backed by Ranjan Pai and T V Mohandas Pai, as some of its earliest investors. Most recently, International Finance Corp, associated with the World Bank, proposed an investment of $15 million in exchange for a small stake in the company.
A total of 500 employees work for the company across three specialties — the content creation team, the skilled media production house who work to transform content into an interactive experience, and the technology team, who work on the platform in order to offer an individualized experience to each user.