India’s largest edtech platform Byju’s is in advanced talks with rival Toppr for a potential acquisition, according to sources.
Sources close to the development said the deal is estimated to be about $ 120-150 million in size and could be closed in the next 2-3 weeks.
Emails sent to Byju’s and Toppr did not elicit a response.
Founded in 2013 by IIT Bombay alumni Hayath and Hemanth Goteti, Toppr uses artificial intelligence-based machine learning algorithms to personalise learning paths for every learner. It provides K12 syllabus coverage with thousands of course combinations and has over 16 million students on the platform.
The edtech space has seen strong growth globally, with the COVID-19 pandemic serving as an inflection point.
In the past, Byju’s has acquired TutorVista, Edurite (from Pearson in 2017), and Osmo (in 2019). Last year, the General Atlantic-backed company had acquired coding training platform WhiteHat Jr for $300 million.
Byju’s, which has raised funding from marquee investors like Mary Meeker and Yuri Milner, has also been aggressively expanding its presence in various segments of online education in the country.
The Byju’s app has over 75 million registered students and 5.2 million annual paid subscriptions.
It has also seen a strong growth in valuation with each subsequent funding round. In November, Byju’s reportedly raised about $ 200 million (Rs 1,483 crore) in funding from investors, including BlackRock and T Rowe Price, at a valuation of $ 12 billion.
Two months before that, Byju’s had raked in $ 500 million (about Rs 3,672 crore) in a round that valued the company at $ 10.8 billion.
Since the lockdown, BYJU’S claims that over 20 million new students have started learning from its platform for free. Today, the app has over 64 million registered students and 4.2 million annual paid subscriptions. BYJU’S had doubled its revenue from Rs 1,430 crore to Rs 2,800 crore in FY20.
(Disclaimer: Additional background information has been added to this PTI copy for context)