New York-based hedge fund Tiger Global Management will invest $200 million in Think and Learn Pvt. Ltd, the education technology firm that owns and operates learning app Byju’s, the startup said on Thursday. According to a person familiar with the matter, the investment will raise the valuation of India’s third-largest startup by around 45% to about $8 billion.
Despite its positive track record, the company faces a number of challenges, an analyst said.
“The biggest issue ahead for Byju’s is customer acquisition and customer retention,” said Sanchit Vir Gogia, analyst and chief executive officer at Greyhound Research.
“While the number of registered users may be growing, it is the percentage of renewals that matters. A lot of learners tend to drop out,” Gogia said.
“Secondly, the content assumes a certain standard of knowledge, thus the applicability of the content needs to be improved,” Gogia added. “For instance, the level of all sixth grade students may not be the same, but the content is standard.”
Byju’s needs to improve its engagement with students as it “has not figured out individual learning paths,” the analyst said.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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