According to sources, the EdTech firm Byju’s is soon going to get its hands on a smaller rival online learning platform Toppr, which is just a start-up for around $150-160 million. According to two people who know about this change, this could result in the further development of the EdTech sector. Both the online teaching platforms, Toppr and Byju’s operate for the entire learning space of K-12 (Kindergarten to Class 12).
Two of the masters of the EdTech sector, Unacademy and Byju’s, got an advantage during the lockdown that was caused due to the coronavirus epidemic, which further led to online learning. Both the platforms, last year, raised a huge amount of funds and were on a spree to acquire other start-ups and continue to look for strategic buyouts. In 2020, Byju’s raised more than $1.25 billion and presently stands at a value of $12 billion. The EdTech firm Byju’s also bought WhiteHat Jr., which is an online coding school for children, for $300 million last year, in August.
Out of the two knowledgeable people, one said, “Business momentum for Byju’s has not slowed down even beyond the pandemic. With the Toppr acquisition, Byju’s will strengthen its focus in the K-12 space. Toppr will bring tremendous value to the table for Byju's. At this stage, Byju's is eyeing both international expansion and strategic inorganic growth."
The deal about Byju’s and Toppr was first informed by Entrackr on Monday. Byju’s is also said to make another transaction wherein it will buy an offline test preparation firm, Aakash Educational Services for $1 billion. When asked about this, neither Byju’s nor Toppr replied to any questions.
In 2020, according to reports made by Venture Intelligence, the EdTech firms have raised $2.1 billion, which is the maximum by any other sector and previously, in 2019, these firms raised $426 million.