New Delhi: The most valuable Startup of India, BYJU’s online education provider, is in talks to increase between $ 400 million to $ 600 million and then accelerate the plan for the initial public offering (IPO) next year, according to people who are familiar with this problem.
The company headquartered Bangalore can cover pre-IPO fundraising within a few weeks with a ratings of around $ 21 billion, said one person, who asked not to be named because the details were personal.
Fundraising is likely to be divided on average between equity and debt.
Byju, led by former Teacher Byju Ravedran, then aims to submit an initial IPO document at the beginning of the second quarter next year, immediately after the closing of his financial year in March, two people said.
Previously saw Timeline 12 to 24 months.
Startup and bankers discuss the assessment of $ 40 billion to $ 50 billion, although final determination will depend on the financial results and requests of investors, said people.
Among banks in talks are Morgan Stanley, Citigroup Inc.
and JPMorgan Chase & Co, one of the people’s words.
The same bank is involved in current fundraising.
Byju’s, Morgan Stanley, JPMorgan and Citi declined to comment.
Investment bankers also have alternatives such as IPOs in the US or mergers with special purpose acquisition companies, but these options, but these options are less likely than lists in India, two people say.
The technology sector has surged this year, with an IPO fundraising on its path to reach the recording level.
The venture capital company has also increased their investment in the country, partly driven by the hard action of the Communist Party in China which has made the market less friendly.
BYJU was valued at $ 16.5 billion after raising around $ 150 million from UBS Group AG, Bloomberg News reported in April.
It placed it right in front of the second most valuable startup in this country, the Paytm digital payment provider, according to the CB of CB insight.
Meanwhile, Paytm has submitted an initial document for what can be the largest IPO in India up to $ 2.2 billion.
BYJU has the potential to become a global leader in education technology, especially because the recent reforms Beijing places severe restrictions on similar startups in China, said one person.
It has attracted high investors and showed a new target assessment of $ 21 billion can be achieved, said the person.
Online education startup, officially called Think & Learn Pvt, has a leading global investor including Facebook founder Mark Zuckerberg’s Initiative Chan-Zuckerberg, Naspers Ltd, Global Tiger Management and Management of Private Equity Silver Lake Management.
In a recent conversation with Bloomberg News, Ravedran founder said the startup targeted 100 billion rupees ($ 1.4 billion) in revenue in the year ending March 2022, with a margin of 20%.
BYJU’s has been at the acquisition party last year, obtaining startup offering coding lessons, professional learning courses and preparatory test classes for competitive Indian exams.
The company added 45 million students to its platform as a peamping pandemic in India last year and said in July it has more than 100 million users on the application.
About 6.5 million are paid customers and the annual extension level is 86%.