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According to sources familiar with the situation, Byju’s, India’s most valuable startup, is in advanced talks to go public through a combination with one of Churchill Capital’s special-purpose acquisition businesses.

Some resources say the startup has held negotiations with several possible SPAC partners and is the farthest advanced in working out an arrangement with Michael Klein’s Churchill Capital.

Byju’s would raise roughly $4 billion in total and seek a valuation of around $48 billion under the preliminary terms negotiated. The startup was estimated to be worth $21 billion.

Byju Raveendran, a former teacher who started and leads the Bangalore-based organisation, provides K-12 courses and video material to millions of Indians studying for tough engineering and medical entrance exams. It also offers students in North America, the Middle East, and Latin America one-on-one coding, math, and reading sessions and materials. He had hoped to file preliminary documents for a typical IPO in the second quarter of 2022. People familiar with the subject said at the time that the firm and its bankers had discussed a valuation of $40 billion to $50 billion, but that the ultimate decision would be based on financial results and investor demand.

This year, India’s IT sector has exploded, with IPO fundraising on course to set new highs. 

Paytm, a pioneer in digital payments went public in the country’s largest IPO ever, but its stock rapidly plummeted. It’s unclear if that incident has influenced investor interest in large offers.

In a recent interview with Bloomberg News, creator Raveendran stated that the company aims for revenue of 100 billion rupees ($1.3 billion) and a profit of 20% in the fiscal year ending March 2022. In the last year, Byju’s has been on a buying spree, purchasing firms that provide coding lessons, professional learning courses, and test prep programmes for competitive Indian examinations.

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