Four investors pocket about $314m from part-exits in Byju’s: Report

Byju’s founder Byju Raveendran. Photo: Mint

World’s most valued edtech startup Byju’s has managed to give handsome returns to some of its prominent backers on their investments in the company.

Sequoia Capital, Times Internet, SCHF PV Mautiritus, and Mark Zuckerberg’s philanthropic organization – the Chan Zuckerberg Initiative have together managed to take home about $314 million (Rs 2,229.53 crore) by partly selling their stakes in the Indian edtech company during FY19, Entrackr reported.

These investors have offloaded their respective shares to the other backers of Byju’s including General Atlantic, Naspers Ventures and Canada Pension Plan, in the partial exit scheme.

Quoting the company’s filings, the report said that Sequoia has received 21.13 times of its Rs 78.8 crore investment amounting to Rs 1,665.33 crore during FY19 while Times Internet has made a 7X return amounting to Rs 206.82 crore during the same period.

SCHF PV Mauritius, via secondary transaction, has managed a return of Rs 189.68 crore on an investment of Rs 27.3 crore in the company while Chan Zuckerberg has fetched a return of Rs 167.7 crore on its investment of Rs 22.86 crore.

Divya Gokulnath Ravindran and Zeus Education Promoter’s return on investment stood at Rs 495.76 crore and Rs 32.3 crore, respectively. According to the report, founders continue to hold more than 30 per cent stake in the company.

Byju’s, operated by Bengaluru-based Think and Learn Pvt. Ltd, was recently in the news for raising $200 million in fresh funding from New York-based investment firm Tiger Global at a striking $8 billion valuation. Byju’s was valued at $5.5 billion when it raised $150 million in a funding round led by Qatar Investment Authority (QIA) in July last year. The round had also seen participation of Owl Ventures, an education technology investor.

In December 2018, Byju’s had raised $540 million led by Naspers Ltd, with participation from the likes of Canada Pension Plan Investment Board (CPPIB) and General Atlantic. The round had valued the company at around $3.6 billion. General Atlantic topped its investment with another Rs 75-80 crore in the company in March last year.

Until now, the company has raised about $1.2 billion across rounds. Other investors in the Indian company include Verlinvest, Lightspeed Venture Partners, Aarin Capital, and Tencent.

The company’s net loss narrowed to Rs14.91 crore for the financial year ended March 2019, compared to Rs37.19 crore losses reported in the same period a year ago. Its revenues of stood at Rs1,306 crore in FY19 compared with Rs 471.18 crore in FY18. The company claims to have turned profitable in June 2018 after achieving $14.3 million in monthly revenue.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.