Last Updated on Dec 17, 2021 by Ayushi Mishra
Byju’s, India’s most valued start-up, may follow ReNew Power’s lead and list in the United States via the Special Purpose Acquisition Company (SPAC) method.
According to Bloomberg, the educational technology company seeks a merger with one of Churchill Capital’s SPACs. According to the statement, the Byju Raveendran-led business has conducted discussions with many possible SPAC partners and has made headway with Michael Klein’s Churchill Capital.
In February, Churchill Capital VII raised more than $ 1.3 bn. and is listed on the New York Stock Exchange (NYSE).
According to the source, under the preliminary parameters negotiated, Byju’s would raise up to $ 4 bn. and seek a valuation of around $ 48 bn. According to market research company CB Insights, it was valued at $ 21 bn. While Securities and Exchange Board of India (SEBI) is thought to be developing a framework for SPAC, its popularity has grown in developed economies such as the US in recent years.
Many Indian start-ups are reportedly interested in pursuing this path, notably after ReNew Power paved the way in August.
A SPAC, sometimes known as a ‘blank-cheque business,’ is essentially a shell company that generates money through an initial public offering (IPO) and then merges or purchases an unlisted corporation within 2 yrs. SPACs are typically formed by private equity funds or financial institutions with expertise in a specific industry or business sector.
According to the source, while an announcement from Byju’s might come as early as January, the discussions are not yet final, and the Indian start-up may even explore a local IPO in 2022.
General Atlantic, Sequoia Capital, the Chan-Zuckerberg Initiative, Naspers, Silver Lake, and Tiger Global are among the notable investors in Byju’s.
Byju’s might potentially follow in the footsteps of Paytm, Zomato, and Nykaa, which have all taken advantage of the primary market excitement to be listed on the bourses. Byju’s, founded in 2015, has undertaken several acquisitions to cement its market position.