Byju's in talks to raise up to $600 million ahead of IPO next year

 The Bangalore-headquartered company could close the pre-IPO fundraising in a few weeks at a valuation of about $21 billion

India’s most valuable startup, the online education provider Byju’s, is in talks to raise between $400 million to $600 million and then accelerate plans for an initial public offering next year, according to people familiar with the matter.

The Bangalore-headquartered company could close the pre-IPO fundraising in a few weeks at a valuation of about $21 billion, said one of the people, asking not to be named because the details are private. The fundraising is likely to be split roughly evenly between equity and debt.

Byju’s, led by former teacher Byju Raveendran, is then aiming to file its initial IPO documents as early as the second quarter of next year, soon after the close of its financial year in March, two of the people said. It had previously looked at a timeline of 12 to 24 months. The startup and its bankers are discussing a valuation of $40 billion to $50 billion, although the final determination will depend on financial results and investor demand, the people said.

Among the banks in the talks are Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co., one of the people said. The same banks are involved in the current fundraising.

Byju’s, Morgan Stanley, JPMorgan and Citi declined to comment.