New Delhi: Byju Raveendran, the founder of Byju’s, says the edtech major will be a Rs 30,000 crore brand by 2023. Byju’s is one of India’s biggest unicorns, valued at $16.5 billion.
Raveendran, in an interview to Business Today, said that Byju’s “is looking at $5-6 billion revenues” over the next three-four years and that by 2023-24 the edtech major should be a Rs 30,000 crore brand.
Elaborating on the same, Raveendran further stated: “Since our retention rate is as high as 80 per cent, every passing year, we will become more and more profitable. So, in a steady state, we will have 35-40 per cent margins in our core model, and 25-30 per cent in Aakash, so a blended profit margin of 30 per cent is easily possible. So, if we get a $5 billion revenue line, we will have $1.5 billion in profits, conservatively.”
Raveendran also added Byju’s IPO is “very much on the cards”, but it won’t happen in 2021.
The country’s most valued edtech startup is backed by investors like Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Tencent, Sequoia Capital, Sofina, Verlinvest, IFC, Aarin Capital, TimesInternet, Lightspeed ventures, Tiger Global, Owl Ventures and Qatar Investment Authority.
The edtech space has seen strong growth globally, including in India, with the COVID-19 pandemic serving as an inflection point. Many offline classes went online to ensure continuity of education while adhering to social distancing norms. A number of players have raised fresh funding from investors, along with consolidation.
Byju’s has been on an acquisition spree with the buyout of Aakash Educational Services for about a billion dollars, Singapore-headquartered Great Learning for $600 million (about Rs 4,466 crore), and US-based digital reading platform Epic for $500 million (around Rs 3,729.8 crore).