Indian EdTech giant Byju’s has announced that it has raised $250 million in new funding from existing backers and previous investors as it attempts to navigate the market downturn that has compelled it lay off thousands of employees.
TechCrunch's latest funding values the Bengaluru-based startup at $22 billion, the same figure it raised in March this year.
The latest announcement comes after Byju’s announced their plan to sack about 2,500 employees across departments to cut costs amid mounting losses. Mrinal Mohit, CEO of Byju's India business, said the move was necessary due to the company's downward performance over the last six months.
Qatar Investment Authority, Qatar's sovereign fund, participated in the round, according to the company.
Byju's has been clearing its debts and other balances in recent months, according to various sources. TechCrunch previously reported that the company paid $234 million to Blackstone for Aakash's $1 billion acquisition.
“Byju’s is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favour,” said Raveendran, the founder, in the statement.
“This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact. Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability,” he added.
Byju’s names QIA, Prosus Ventures, Chan Zuckerberg Initiative, Sequoia Capital India, Silver Lake, Owl Ventures, UBS and Blackrock are among its backers and have raised nearly $6 billion to date.