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BYJU’S is raising about $150 million from UBS Group AG that will value the edtech major at about $16.5 billion, according to sources.

UBS could also infuse additional funding into BYJU’S, which has seen significant growth in the past few quarters on the back of strong uptake of online education, the sources close to the development said.

BYJU’S declined to comment, while the response from UBS Group AG could not be immediately ascertained.

Think & Learn Pvt Ltd, which operates BYJU’S, is backed by marquee investors like Mary Meeker, Yuri Milner, Chan-Zuckerberg Initiative, Tencent, Sequoia Capital, Tiger Global, and others. It is estimated to have raised over $2 billion in funding to date.

The edtech giant is said to be looking at raising $600-700 million in funding to further accelerate growth.

Earlier this month, BYJU’S, which is the most-valued edtech startup in the country, had acquired Aakash Educational Services Ltd (AESL) to bolster its presence in the test preparation segment in the country in an estimated $1 billion deal. The edtech major had also bought coding training platform WhiteHat Jr for $300 million last year.

Launched in 2015, BYJU’S has over 80 million students cumulatively learning from the app, 5.5 million annual paid subscriptions, and an annual renewal rate of 86 percent. During April-September 2020, BYJU’S added 45 million new students to its platform.

The edtech space has seen strong growth globally with the COVID-19 pandemic serving as an inflection point.

While a number of players have raised fresh funding from investors, consolidation is also being seen in the industry with deals like Unacademy acquiring PrepLadder for $50 million and BYJU’S acquisition of AESL.

Earlier in March 2020, the edtech unicorn had raised Rs 3,328.23 crore ($460 million approximately) as part of its ongoing Series F funding round led by MC Global Edtech Investment Holdings at a valuation north of $13 billion.

The other investors who participated in this round include B Capital, Baron Global Advantage Fund, XN Exponent Holding, Arison Holdings, TCDS (India), and TIGA (India), filing with the Registrar of Companies by BYJU’S reveal.