Byju’s is one of the most prominent decacorns in India. It has changed the concept of digital learning through its innovation and well-timed experimentation. Recently, the digital learning platform has entered the live-tutoring arena.

Byju’s IPO TIMELINE,

The platform offers a variety of learning courses to students of classes I – XII. In addition, Byju’s also offers online courses to aspirants of competitive and entrance examinations. Accordingly, Byju’s has occupied a large market share and emerged as one of the pioneers in online education over the years

Byju’s IPO OBJECTIVE

Meeting growth and expansion purpose
Cater to working capital requirements
Meeting expenses of share issuance
Account for general corporate purposes

POSITIVE

Byju’s has made it to the Times’ first list of 100 most influential firms.
So far, the company has clocked more than 25 million downloads.
It has over 1.7 million annual paid subscriptions.
Byju’s enjoys an annual renewal rate of nearly 86%.
It has more than 40 million registered users.

NEGATIVE

Byju’s IPO DETAILS

Subscription Dates	Coming soon
Price Band	Coming soon
Fresh issue	NIL
Offer For Sale
Total IPO size
Minimum bid (lot size)	Coming soon
Face Value	INR per share
Retail Allocation	10%
Listing On	NSE, BSE

Byju’s IPO TIMELINE

IPO Open Date	Not Announced
IPO Close Date	Not Announced
Basis Of Allotment Date	Not Announced
Initiation Of Refunds	Not Announced
Credit Of Shares To Demat ACcount	Not Announced
IPO Listing Date	Not Announced

So, how does Byju’s IPO Fare in Terms of Financials?

Byju’s is a leading player in the digital learning space. Since its inception, this learning platform has garnered a lot of traction to develop a massive loyal customer base.

Its robust number of subscribers and smart use of innovations add to its growth. This offers upsides regarding its growth and earnings prospects, which could allow investors to realise significant returns on their investments.

That said, investors should consider studying its scope and limitation in detail to make an informed choice. This will help them decide its merit by the time the company rolls out more IPO details and its timeline.

Financial Details

The financial highlights of Byju’s IPO are summarised in this table below –

Financial Year	Total Revenue	Total Assets	Profit After Tax
As Of 30 June 2020	–	–	Rs. 135.51 Million
March 2020	–	–	Rs. 447.45 Million
March 2019	–	–	Rs. 68.04 Million
March 2018	–	–	Rs. 26.91 Million

Note: We will update the financial summary as soon as the company releases earnings details.

FINANCIAL REVIEW

Byju’s IPO VALUATIONS

	FY2019	FY2020	FY2021
Earnings Per Share (EPS)
PE ratio	–	–
Return on Net Worth (%)
ROCE (%)
EBITDA (%)
Net Debt/Equity
Book Value (NAV)

VALUATION REVIEW:

Byju’s IPO – SWOT ANALYSIS

Strengths

Diverse Product offerings: This digital learning platform offers multifarious learning solutions in regional languages. The learning materials and online classes are available in different formats, including theories, stories, and visuals. In addition, students have the option to choose from multiple learnings resources.
High Customer Retention Rate: Byju’s app boasts high student engagement. Its fine-tuned study solutions and the enhanced interface makes students come back to the digital portal more often. This also helps in customer retention.
Strong Financials: In the last couple of years, the company has maintained a strong financial position. This continues to allow this learning platform to boost its reach and experiment with its offerings.
Smart Acquisition Strategy: Byju’s smart acquisition strategy offers it an edge over its competitors. Recently, this learning platform has acquired White Hat Jr. for a whopping $300 million. Such a move now allows Byju’s to offer coding classes to its students while at the same time it has helped the platform eliminate one of its biggest competitors.

Weaknesses

Poor Inventory Management: Byju’s struggles with improper inventory management. Its return on investment is also low because of high expenses.
Stagnant growth in international space: This company plans to grow in international territory. However, the enrolment of foreign students is unimpressive as of yet.

Opportunities

Demand for Online Classes: The year 2020 witnessed a major inclination towards digital learning platforms as more schools remained shut due to the pandemic. This trend continues to allow Byju’s to ride the demand for online learning and grow its user base.
Untapped Rural and Semi-Urban Populace: Students based in rural and semi-urban areas are adopting digital trends faster on the heels of the pandemic. Therefore, Byju’s can target these major untapped segments to expand its market footprint.

Threats

Data Privacy: Data breaches and privacy threats are the biggest concerns for Byju’s, and they must upgrade their system to minimise risks.
Imitation Business Model: The company’s business model can be easily imitated by new entrants. This will dilute the unique appeal Byju’s has managed to create in the market so far.
Competitors: More digital learning platforms are coming into existence as new companies are trying to ride this newfound interest in online education. The hike in the number of market competitors is bound to limit Byju’s market share. It also increases the threat of losing existing customers to newer and more innovative competitors

COMPETITIVE ANALYSIS: MARKET PEERS

Byju’s is a competent name in the digital learning platform space. It has robust revenue of $382.1 million and a strong brand presence in the market. However, the digital learning space is becoming more competitive with each passing day. Here is a list of the most noteworthy market peers of Byju’s and their revenue.

Market Peers	Revenue (In Million)
Vedantu	$60 Million
Unacademy	$11.7 Million
Toppr	$7.9 Million
TOPPER	$73 Million
Khan Academy	$43.7 Million
Meritnation	$60 Million
Extramarks	$45 Million
Embibe	$1.5 Million
Qriyo	$ < 1 Million
PLANCESS	$ < 1 Million

Byju’s IPO GMP

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Disclaimer:

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