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Bengaluru-based edtech startup BYJU’S, which is gearing up for its SPAC listing at a record valuation of $44 Bn, is in talks with multiple lenders to raise over a $1 Bn for acquisition purposes in a bid to expand its businesses. 

According to a Bloomberg report, the startup is in discussions with Morgan Stanley, and JP Morgan Chase & Co. to raise money in order to acquire another edtech company. 

However, it is not clear which company the startup is planning to acquire.

Byju Raveendran-led edtech giant BYJU’S, which is currently the most valued startup in the country, has been on an acquisition spree since 2020. Last year, the startup acquired 10 startups, including three foreign companies – EPIC, Tynker and GeoGebra. The startup in 2021 turned heads after it acquired 33-year-old coaching centre Aakash Educational for a record $1 Bn. 

The startup is leveraging Aakash to gain presence in the offline and hybrid mode of learning space in the post-COVID era.

BYJU’S spent over $2 Bn to acquire 10 startups in 2021. In 2020, the startup acquired Karan Bajaj-led coding giant WhiteHat Jr in a record $300 Mn deal, making it the country’s highest edtech deal. 

The latest development comes on the heels of BYJU’S raising $800 Mn in a round led by founder Raveendran himself. With the deal, Raveendran increased his stake in the company to 25%. 

Sumeru Ventures, Vitruvian Partners, and BlackRock were the other participants   in the round. Raveendran, who committed to invest $400 Mn in the round, has floated a separate entity to raise debt from lenders which will later be used to acquire equity in BYJU’S. 

Founded in 2011 by Raveendran and Divya Gokulnath as CAT coaching center, the edtech giant has grown leaps and bounds over the years. The startup’s app has over 150 Mn downloads and claims to have an average time spent of 71 minutes on the app every day. The edtech startup has a presence in seven countries and claims to have an annual subscription renewal rate of 86% with its flagship app – BYJU’S – The Learning App