After announcing mass lay-offs, Byju’s raises $250 million

Indian edtech company, Byju’s, has raised funds worth $250 million from its existing investors, the company said in a statement on Monday. The company did not mention any specific names of the investors who participated in the round.
 
Byju's is backed by prominent venture capital and private equity firms such as Sequoia Capital India, Bond, Chan-Zuckerberg Initiative, Silver Lake, Sands Capital Management, Tencent, Naspers Ventures, and a few more. 
 
Byju Raveendran, Founder and CEO of BYJU’S, highlighted that this year is going to be the best year for the company in terms of “revenue, growth, and profitability” regardless of the “macroeconomic conditions.” 
 
“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. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact,” Raveendran said.
 
This development comes a week after the Bengaluru-based company announced it is laying off 2,500 employees from its total workforce. The spokesperson of the company told Business Today that the layoffs “will not happen immediately” but will happen over “a period of six months.” The company is also planning to hire 10,000 more teachers in the coming year.
 
These steps are being taken to become profitable in FY23, and avoid redundancies and duplication of roles. The company also clarified in a statement released earlier which read, “To avoid redundancies and duplication of roles, and by leveraging technology better, around five percent of Byju's 50,000-strong workforce is expected to be rationalised across product, content, media, and technology teams in a phased manner.”
 
The edtech decacorn is also reworking its marketing budget to ensure “more efficient growth.”