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Hello reader,
I’d like to virtually introduce you to my niece, Nila, an 8-year-old who lives in a very small town in India. There are about 60 students in her class, who are all taught by more substitute teachers than their assigned class teacher.
Nila is an ambitious little girl, with limited resources to reach her full potential. She represents most children in rural Indian cities.
Today, she’s using engaging videos and tests on Byju’s – the most valuable edtech firm in the world – as a supplement to classroom teaching. Our hot story for the day has exclusive details on Byju’s plans to acquire yet another company to extend the reach of its services.
Today we look at:
- Byju’s newest acquisition of an edtech firm at a huge premium.
- An Indonesian insurtech company’s plans to expand its business.
- Other newsy highlights such as Singaporean popstar JJ Lin’s entry into the NFT world and Grab’s new intercity travel services.
Premium summary
Byju’s nth deal
Image credit: Timmy Loen
Edtech titan Byju’s has secured US$2.4 billion in acquisition financing from various international banks, two sources close to the development told Tech in Asia. India’s largest startup will use US$2.2 billion out of this amount to buy 2U, a US-based edtech firm.
- Guess who?: One of the banks involved in the financing is a global player in the same league as Goldman Sachs, JPMorgan Chase, and Morgan Stanley, according to one source. While the sources didn’t disclose details about the acquisition financing, they said the terms were “favorable” for Byju’s.
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Payday for 2U: Currently, 2U’s market value is at US$944 million. With the acquisition price at US$2.2 billion, it would mean that the company is being bought at a 75% premium. Last week, it was reported that Byju’s made a bid to purchase 2U for over US$1 billion, offering US$15 per share to the board of the US-listed edtech firm. Since the news broke out, 2U shares on Nasdaq have jumped by over 20%.
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Where’s the money coming from?: Byju’s said that it had received most of the US$800 million funding that it unveiled in March. The company also told Tech in Asia that its audited financial results will be announced in the next 10 days. It was previously reported by The Ken that Byju’s 2021 financials were delayed because it was awaiting approval from its auditor, professional services giant Deloitte.
Read more: Exclusive: Byju’s secures $2.4b financing to buy US edtech firm 2U
Got you covered, Indonesia!
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