'Edtech startup Byju's in talks to go public via SPAC route'

Indian edtech giant Byju`s is in advanced discussions to go public through one of Churchill Capital`s special-purpose acquisition companies (SPAC), Bloomberg News reported, citing sources.

Byju`s has held talks with several potential SPAC partners and was working out an agreement with Michael Klein`s Churchill Capital, Bloomberg reported, adding that the startup would raise a total of about $4 billion and seek a valuation of about $48 billion.

The negotiations are not final and Byju`s or Churchill could still opt out of such a deal, and Byju`s could consider an initial public offering in India next year, the report said, citing sources.

Byju`s and Churchill Capital did not immediately respond to Reuters` requests for comments.

India has seen a boom in online education, a market which has only expanded as the pandemic forced schools to close and also targets thousands of aspirants who attempt the government-run joint entrance exam (JEE), eyeing coveted undergraduate engineering courses.

Bangalore-based BYJU`s was founded by Byju Raveendran, a former teacher, and is backed by U.S. investment firm Tiger Global, Mark Zuckerberg’s Chan-Zuckerberg Initiative, Sequoia Capital India and BlackRock to name a few.