E-commerce and media group Naspers confirmed today it has led a $540m primary and secondary round for India-based learning app developer Byju’s that included Canadian Pension Plan Investment Board.
The corporate made its investment through corporate venturing unit Naspers Ventures, according to reports last week. General Atlantic put up $100m for the round in October 2018, and it valued Byju’s at $3.6bn to $3.7bn.
Founded in 2011, Byju’s provides a mobile app that combines teaching, videos and interactive content to help students from kindergarten to age 18 learn more effectively with tailored education plans.
The app has accumulated some 30 million users and has 2 million paid annual subscribers, and Byju’s plans to invest in global growth and the enhancement of its technology.
Russell Dreisenstock, head of international investments for Naspers Ventures, will join the board of directors at Byju’s in connection with its investment. The companies have not revealed the ratio of direct or secondary share investments or which backers sold shares.
Dreisenstock said: “With the largest school-age population in the world and a growing middle class with the willingness to commit significant resources towards quality education for their children, Byju’s is perfectly positioned to provide an effective supplemental education solution for students across India.
“We partnered with Byju’s because we believe the company’s success in India will translate across borders in any country where students are looking for an innovative and engaging form of education beyond the classroom.”
The round came after $244m of earlier funding including $50m from investors including Times Internet, the online services arm of media company Bennett, Coleman & Co (BCCL), Sequoia Capital, Sofina, Lightspeed Venture Partners and Chan Zuckerberg Initiative in September 2016.
World Bank subsidiary International Finance Corporation invested $15m later in the year before investment firm Verlinvest provided $31m in March 2017. Byju’s raised a further $40m in funding from investors including internet group Tencent four months later.
Tencent and BCCL subsequently invested an undisclosed amount in the company in late 2017 at a reported valuation of $1bn. Aarin Capital is also among its earlier investors.
