Current Pandemic worked as a boon for edtech startups. Due to the lockdown, schools and other institutions have adopted the online teaching-learning process. Indian edtech platforms like un academy, Byju’s, Vedantu have shown tremendous growth in the year 2020. Most of the funding in edtech platforms has been raised during the last 12 months.
Investors have shown immense trust in the online education platforms. These platforms have acquired other edtech startups to expand their operations widely. Byju’s is the leader in the Indian online education ecosystem. It has acquired big players like Whitehat Jr. And offline coaching giant Aakash. In a recent acquisition, Byju’s has acquired Toppr, it’s rival in k-12 space.
Did Byju’s Acquired Toppr?
The current deal between Toppr and Byju’s has been revealed by three key persons who are familiar with the complete financial transactions. As per them, Byju’s will acquire a 100% stake in Toppr with a total value of $150 million.
Insiders also told that this deal discussion is going on for the last 2 months. Finally, it is in the last phase of acceptance. Both parties may announce the details very soon.
With this deal, Byju’s has established itself as the biggest acquirer in the space. Toppr is the third-largest acquisition by Byju’s. First, it took control of Whitehat Jr that is a kids-oriented coding organization. With a total value of $300 million, it took over Whitehat Jr in August 2020.
Recently, Byju’s surprised everyone with an acquisition deal of $1 billion to acquire the most prestigious offline coaching institute Aakash. For medical test preparation, Aakash institute is a known name in India. It also started engineering test preparation. Pandemic hit the offline coaching institutes very badly.
As per entracker exclusive report, An insider who did not reveal his identity, said that the current deal is mostly cash-based. It is a strategic acquisition by Byju’s to establish itself in the k-12 space.
Byju’s Current Status and Importance of Toppr Acquisition
The K-12 segment is considered the base of education. To woo the school going kids, edtech companies are investing a lot of money on different marketing strategies. Some of them are even blamed for misleading advertisements.
When asked about the current deal, Byju’s did not say anything whereas media portals are still awaiting a response from Toppr.
In the last year, Toppr also showed positive growth but they failed to attract new investors. In the last funding round of the D series, only one existing investor showed interest.
On the play store, users downloaded Toppr more than 10 million times. An average user rating of 4.2 shows the wide acceptance of this platform. It also provides JEE, and NEET exams related classes except it’s known as 5 to 12 standard study preparation.
Byju Raveendran, the founder of Byju’s, belongs to the teaching field. He started an app to help kindergarten to 12th standard students in 2011. As per the recent data, Byju’s is adding more than 5 million students to its platform every month. It has a wide network in more than 1750 cities.
Premium users’ growth has helped byju’s in earning good revenue. 4 and a half million users have subscribed to the paid services on Byju’s platform. It has a huge database of 70 million students who log in to the platform for different services.
In the last 2 years, Byju’s has raised a total of $800 million to make its valuation $12 billion. On the play store, it has a total of 50 million+ downloads with an average user rating of 4.3 out of 5. Byju’s is also focusing on the government job preparation videos and classes. Recently, it has started an IAS preparation related service.