The unicorn edutech startup Byju’s is all set to become the new sponsor of Indian cricket team, according to Times of India (TOI) report. The Bengaluru based company will be replacing Chinese mobile maker Oppo as the new sponsor once the Indian team concludes the upcoming West Indies tour. This means come September Indians will see Byju’s logo on the jersey of Indian cricket team.
However, the news still awaits the official confirmation as concerned parties are yet to release any statement on the report.
Oppo decided to call it quit as the main sponsor of Indian cricket team since it found the sponsorship value to be too ‘high’ and ‘unsustainable,’ TOI report claims citing sources. The report further goes on to claim that the deal between Oppo and Byju’s was settled almost two weeks ago. As part of this deal the former will make minor payment to Byju’s that will be eventually proceeded to BCCI.
BCCI, on other hand, will not incur any loss due to change of the sponsor company. The governing body of the Indian cricket team will continue to receive the same amount of endorsement money as decided with Oppo in 2017 sponsorship deal.
Oppo won the bidding right for team India jersey rights for 2017-22 for whopping Rs 1079 crore. This broke down to Rs 4.6 crore for a bilateral match and Rs 1.56 crore for per ICC/Asia cup event.
Byju’s about to start a new Inning
With cricket touted as a religion in India, clinching sponsorship deal with BCCI may prove to be a watershed moment for Byju’s. It is likely to do world of good to company’s branding prospects in the domestic as well as international markets.
The company has already roped in Bollywood superstar Shahrukh khan to sway consumers in the domestic market but has no credible face to boost branding credentials in the international market. The sponsorship deal with BCCI may help to fill this vacuum, especially since Byju’s is trying hard to push for growth in foreign countries where cricket is quite popular. This includes U.K., Australia and New Zealand, with company equally pushing for expansion in the U.S. where cricket’s popularity is steadily gaining.
Byju’s fundraising ability will come in handy to fund the expensive sponsorship deal with Indian cricket team. The company is India’s most highly valued edutech firm and till date has raised nearly $925 Mn from several high-profile investors. Its current market valuations stands at $5.5 Bn.