NEW DELHI -- Education technology company Byju's has overtaken Paytm to become the most valuable Indian startup after raising about $340 million in fresh funding at a valuation of $16.5 billion.
Digital payments company Paytm is currently valued at about $16 billion.
According to a report in the Economic Times, investors in Byju's latest round included UBS Group, Blackstone, Zoom founder Eric Yuan, Abu Dhabi sovereign fund ADQ and Phoenix Rising-Beacon Holdings.
The capital injection is part of a $1.5 billion funding round that the company started in April, the report said. Byju's raised $1 billion in April from Baron Funds, B Capital Group and XN Exponent Holding, along with existing investors.
The company raised more than $1.18 billion last year alone from investors including Mary Meeker's venture capital firm Bond Capital, DST Global, BlackRock, T. Rowe Price, Silver Lake and MC Global.
With the increased demand for online learning amid the ongoing COVID-19 crisis, Byju's is looking to grow through acquisitions and enter the new segments of test prep and upskilling.
In April, Byju's announced the purchase of Aakash Educational Services Ltd. (AESL) with the aim of boosting its presence in the test preparation segment. The acquisition was worth almost $1 billion, making it one of the biggest deals in the edtech space.
The company is reportedly also in advanced talks to acquire upskilling platform Great Learning and test prep firm Gradeup.
Launched in 2015, Byju's claims to have more than 80 million students, including 5.5 million annual paid subscribers. The company saw revenue grow at a compound annual growth rate of 125% over the past three years to about $400 million. It aims to close fiscal 2021 with $1 billion in revenues, per a Financial Express report.
For the original story from DealStreetAsia, click here.
DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.