Edtech leader Byju’s is considering a public market listing in the United States through a special purpose acquisition company (SPAC), sources with knowledge of the company’s plans said.

It is also evaluating a domestic listing in the second half of calendar year 2022 and is in talks with bankers, sources said .

“Michael Klein’s Churchill Capital has made an offer of investing $4 billion at a valuation of more than $48 billion,” the source said. “Since a large part of the business is in the US, a listing in the market is being considered,” the person added.

This will make Byju’s the most valued privately held startup in India.

The Bengaluru-based company was valued at $21 billion in November when it mopped up the first tranche of its intended $1.5 billion from investors.

“The company is considering the offer and will make a decision in a few weeks and will look at a listing timeline of post H1 in the next calendar year,” the source added.

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SPACs – also known as blank check firms – typically have a business plan centred around a merger with or acquisition of another company.

Bloomberg was the first to report the development on Thursday.

Churchill Capital VII raised more than $1.3 billion in an offering in February and trades on the New York Stock Exchange.

Byju’s has a revenue run rate of $1.5 billion currently and is projected to grow to $3 billion by 2023.

“Going by the way Indian startups are valued at 18-20 times GMV (Gross Merchandise Value), the company expects a whopping $50 billion+ valuation from the Indian market,” said another person in the know.

Last month, the company
raised $1.2 billion through a term loan from the overseas market.

It also stitched together the first tranche of the $1.5 billion fundraise when it got $300 million from investors led by Oxshott Capital Partners. XN Exponent, Edelweiss, Verition Master Fund, IIFL and Time Capital Advisors also participated in that funding round.

The company is already profitable and has acquired around eight companies so far, including US-based
Tynker, a leading K-12 creative coding platform;
Aakash Educational Services,
Great Learning,
Gradeup, and US-based digital reading platform
Epic, among others.

Byju’s has
spent more than $2 billion on acquisitions over the past few months, triggering consolidation in an industry that has gained due to the Covid-19 pandemic.

“It has almost $2 billion in cash reserves that it will use for both organic and inorganic growth,” another person said.

Earlier this year, Byju’s expanded overseas through its ‘Future School’ offering, entering the United States, UK, Brazil, Indonesia and Mexico.

The company is also looking to bolster its presence in the North American market.

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