Ed-Tech’s company, the best ED-Tech company, raised another round of capital. And this new round has made the technological company financed by the most valuable company in India to $ 16.5 billion, which has passed PAYTM that has a valuation of $ 16 billion.

In his last round, BYJU has raised around $ 350 million UBS Group, Blackstone, Abu Dhabi Adq, Founder of Zoom Eric Yuan’s Family Office and Phoenix Rising – Beacon Holdings. The fundraiser is part of $ 1.5 billion that the company began to raise in April.

Most of the capital collected will be used to finance an acquisition lever that has in mind.

In terms of acquisition, since 2017, it has acquired nine companies, the largest on the list, the 33-year-old AAKASH prep company, for $ 1 billion. Byju’s is also acquiring rival Toppr in an estimated transaction to be more than $ 100 million. And the reports have to at least three more dealings are in several stages of completion.

But why BYJU can not fulfill its profit goal?

The ED-Tech space in India led by Byju’s has cornered most of the financing of the start-up in 2020, since the pandemic led a boom in subscriptions for online educational services. A group of investors, including the new sponsors, such as Silver Lake and Alkeon Capital, collectively infused more than $ 1 billion in the company last year.

Byju, who is also planning an OPI, serves Kindergarten students to grade 12. The BYJU application provides lessons in mathematics and science through video and games animations.

The affirmations of Byju have up to 80 million registered users and 5.5 million subscribers. But in terms of profits, he can not fulfill his goal, and that is where the concerns of the company begins.

Analysts say that byju’s approach to implacable growth and its huge marketing costs do not allow it to comply with their profit numbers. Of course, BYJU is good for controlling the narrative of the media, and so that seem to be their new new users on their platform in the Covid-Raveed 2020. The beginning says it has grown its user base of Registered students of 70. Million – 4.5 million annual paid suits: Last October to 80 million registered students, 5.5 million annual subscriptions of payment: until the end of April.

ED-TECH startup efforts by increasing its penetration into smaller cities, large investments in the office space and high-price points of their annual subscriptions also prevent it from achieving their goal for net profits. Its first price of RS 15,000 to RS 20,000 per year on the subscription is a bit steep for students who live outside the subway cities.

The market size of the Indian Ed-Tech sector is estimated at 3.7 times in the next five years, to play $ 10.4 billion at 2025 of $ 2.8 billion by 2020. The segment will probably see more than 37 million paid users EN 2025.