Byju Raveendran, formally known and famous for being the CEO and co-founder of the famous teaching and learning app Byju‘s, took a loan amounting to $400 million from international and domestic banks to fund 50 percent of the $800 million funding round of the edtech giant.
Another value investor that actively participated in the $800 million round includes Sumeru Ventures, Vitruvian Partners, and BlackRock. The funding from these value investors raises Byju’s value from $18 billion to $22 billion data based on singhtechcrunch.
According to the sources, this step taken by Raveendran is a part of the company’s strategy. The main motive behind this strategy is to show the founder’s confidence in its firm and the people working there together to make the company a successful one.
The step was taken by Raveendran to boost the confidence of other investors in his company when the fundraising process was not in favor of the company.
A person says that “it is quite impressive and interesting that a founder is leading the funding round of his own company, and it is one of the remarkable steps in the field of investment.”
The $400 million are seen as a “personal investment” in the company which raises Raveendran’s stake in the company from 22 percent to 25 percent.
Another valued customer at Byju’s says that the amount raised by Raveendran might be earned by him at a favorable rate of interest, and besides his shares, he might have given his personal assets as collateral to raise such a huge amount. He is a man of integrity who is willing to use personal property and assets as collateral for a loan.
Raveendran’s Company Byju- Investment And Its Success
Byju’s is one of the leading companies in the field of online teaching and learning. It supports the enhanced education of the students by providing everything available with just one click. Moreover, to clear the doubts of the students, mentors are available at a time of 24 by 7.
The company is a fast-growing company that is looking forward to expanding its business in the new economies and searching for new opportunities there. Byju has more than 150 million registered students all over the world.
The company has a valuation in the billions and this funding round added more monetary aspects to this valuation.
Last October, Byju’s raised an amount of $300 million. This investment came from two great investors of all time: Oxshott Venture Fund, one of the best investment banking and advisory firms, and Edelweiss Private Investment Trust, a leading global and domestic trust on equity.
At that time, the value of Byju’s was $16 billion, which was raised to $18 billion. And now it has raised an investment of $800 million, which brings its total valuation up to $22 billion.
By June 2021, Byju’s had established itself as one of the most valuable edtech platforms, with improved teaching, learning, support, and staffing. Byju Raveendran is a man of value who took a loan amounting to $400 to support his company’s growth.
At present, the company is deciding to go public, which means it will offer the option for the general public to subscribe for the company’s shares.
But it has not been decided by the company yet as to which market it should go public. It has the two largest markets in India and the US, so the company is yet to decide in which economy it should go public.
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