Is BYJU’s valuation way too overrated?
Valuation depends on the value to the buyer. What others think is immaterial.
I’m not a buyer of BYJU’s shares. Therefore, I have no views on the company’s valuation either way.
That said, I read somewhere that the company has 1.6L users, each paying INR 10K/year. That translates to an annual revenue of US$ 25M. That’s a stunning figure, which raises major doubts about the validity of the widely held belief that nobody pays for content in India.
UPDATE DATED 20 NOVEMBER 2020:
It’s four years since I wrote the above answer. I believe that BYJU’s revenue is now US$ 78M. That works out to a CAGR of 33%.
My answer to Is BYJU's valuation way too overrated? https://t.co/G5WituHlh3 .
When I wrote this answer in 2016, BYJU's revenue was US$ 25M. Today it's $78M. That works out to CAGR of 33%. That's high in itself but not "doubling in 2 years" kind of high.
— Ketharaman Swaminathan (@s_ketharaman) November 20, 2020