Indian ed-tech giant Byju’s raised $250 million from New York-based investment firm Davidson Kempner and is on track to raise another $700 million, according to media reports.
The new funding is being provided through structured investments, TechCrunch reported, and said the rest of the funding is expected to be raised from a sovereign fund.
Byju’s is currently valued at $22 billion, and is reportedly in the works planning an IPO of subsidiary Aakash.
The report of Byju’s newest financing plans also comes as ed-tech companies, in India and across the world, have faced a drop in investor interest amid a larger decline in venture capital investment levels. Byju’s is facing a lawsuit in the U.S. accusing the ed-tech company of hiding half a billion dollars, claims that company has strongly denied.
Many ed-tech startups have also used venture capital funds to pursue growth at all costs as the pandemic spurred a rise in demand for remote learning products. As the pandemic wanes and investors’ interest has cooled, some companies are now pivoting toward a focus on profitability, resulting in layoffs and shifts in business strategies.
Vietnamese education company raises $120M. EQuest Education Group, a Vietnamese education company, said it raised $120 million in debt and equity financing as it aims to grow its network of schools in the country.
The Ho Chi Minh City-based company said it raised the equity financing through global investment firm KKR’s ESG-focused fund, which aims to invest in products or services that actively manage environmental, social and governance risks.
EQuest said it will use the funds to grow its Canadian International School system in Ho Chi Minh City, which it describes as the largest international K-12 school system in the city and one that offers IB, AP and Canadian curriculum.
In addition to the K-12 school system, EQuest also plans to use the funding to expand its college and university system, which includes Broward College Vietnam campuses in Hanoi, Hue, and Ho Chi Minh City.
EQuest has been offering accredited associates degrees under Florida higher education provider Broward College’s brand in Vietnam for a decade, and is now planning to offer four-year bachelor’s degrees in addition to associate’s degrees.
“This significant investment reinforces our commitment to provide a world-class education at an affordable cost,” David Armstrong, senior vice president of EQuest, said in a statement.
Spanish language literacy company raises seed round. BeeReaders raised $3.5 million to expand its digital literacy platform, which focuses on offering Spanish-language students resources in reading and writing.
The startup, which was founded in Latin America, is now based in Austin, Texas, and has branches in Chile, Colombia, Costa Rica, Mexico, and Peru. Its platform is aimed at building the reading comprehension skills of Spanish-speaking students in Latin America and the U.S. through a large library of Spanish content that’s presented through gamified interactions.
In announcing the investment, Reinventure Capital Principal Shijiro Ochirbat said the firm was drawn to BeeReaders’ focus on solving the lack of basic reading comprehension proficiency that has impacted students in Latin America.
“We are proud to have invested in BeeReaders as a lead investor due to its significant differentiation of products and services, rapidly growing market opportunity, and immense potential to improve the quality of education for millions of children,” she wrote.
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