Indian edtech Byju’s said it has raised $250 million from existing investors led by the sovereign wealth fund Qatar Investment Authority, days after announcing job cuts in a bid to slash costs.
(Bloomberg) — Indian edtech Byju’s said it has raised $250 million from existing investors led by the sovereign wealth fund Qatar Investment Authority, days after announcing job cuts in a bid to slash costs.
The fundraising keeps Byju’s valuation of $22 billion and its status as India’s most valuable startup, with the bulk of the capital coming from the Qatar fund, a person familiar with the deal said on Monday, asking not to be named as those details are private.
Backed by the Chan Zuckerberg Initiative, General Atlantic and Tiger Global, Byju’s — formally known as Think & Learn Pvt — has raised billions of dollars in capital to finance a global acquisition spree in the face of a tech downturn worldwide.
The company, which has 150 million users, has since been plagued by challenges including a long-delayed filing of audited financial statements and a truncated fundraising this year.
The company last month filed its audited financial results for the year ending March 2021 showing steep losses.
Last week, the company said it would shed 2,500 workers or about 5% of its total workforce and lower its marketing and sales costs, pledging to become profitable by March.
The company will use the fresh capital to help it become profitable, founder Byju Raveendran said in a statement.
“Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability.”
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