Why did Biju raise more than $ 1 billion last year and is already getting close to achieving another half billion dollars? Today we are getting some answers.
Byju said on Monday that it had acquired Akash Educational Education, a 33-year-old physical coaching center, as the Indian online learning giant is strengthening its leadership position in the world’s second-largest Internet market.
The Indian startup, currently valued at $ 13 billion, paid “close to $ 1 billion” in cash and equity for the acquisition, the largest in the EdTech space, three people familiar with the matter told ClearTips. (EY advised firms on the transaction; Bloomberg first reported about the two firms talking in January.)
Supported by Blackstone, Akash operates more than 200 physical tuition centers across the country aimed at students preparing to qualify for engineering and medical colleges.
The decades-old firm has made some of its offerings available online in recent years, but the epidemic’s recent shift to student preferences led to Akash and Byju making a deal six-seven months ago, firm executives said in a joint interview with ClearTips. told. (He declined to comment on the financial aspects of the deal.)
Akash Chaudhary, managing director and co-promoter of Akash Educational, said that the two companies joining the army will provide “very adequate and value-added services” to the students. Aakash Educational will be led by the firm after the acquisition.
He said that this acquisition would help in creating the largest omni-channel for students in India. “Students who want to access physical classes have received from us. And those who wanted to use the content and learn online, have been served by Biju. Together, we will take advantage of physical space and technology and online learning and provide it to students in a way that is unique. “
In an interview, co-founder and chief executive of Co-Founder Startup, Biju Ravendran said that the future of education will be a mix of offline and online experiences. And Baiju, himself a teacher (and the picture above), would know. Before launching the online platform, Rabindran took classes for hundreds of students at the stadium.
Many of Byju’s offerings, such as for trial-preparation, he said, are an online-only model still a few years away. Officials said Monday’s deal is also aimed at increasing the reach of interest and Akash Educational in small towns and cities.
Amit Dixit, co-head of Asia Acquisitions and India’s private equity head at Blackstone, which acquired a 37.5% stake in Aakash for around $ 183 million in 2019, said it was a “winning model in omni-channel test prep and tuition” Will, and we look forward to being part of a partnership between two leading companies in Indian complementary education – Aakash and Byju.
Byju’s userbase – which prepares students pursuing undergraduate and graduate level courses – has grown significantly since last year, now having more than 80 million users, of which 5.5 million are subscribing customers. Byju, which is profitable, generated more than $ 100 million in revenue in the US last year, a session organized by Indian venture fund Bloom Ventures last month by Deborah Quazzo, managing partner of GSV Ventures (which has supported Indian startups) I said
The startup has used the last two years through acquisitions to do inorganically well. In 2019, it acquired US-based Osmo for $ 120 million, and last year, it bought Whitehat Junior, a child-focused coding platform, for $ 300 million. Raveendran said the startup is acquiring more companies. ClearTips reported last week that the startup is “acquiring more than $ 10 million” with California-headquartered startup Epic.