Byju’s, the county’s largest ed-tech firm in the final stage talks to acquire competitor Toppr. According to the sources, it is estimated that the deal will be done for a cost of $150 million. As online learning is catching on Byju’s underlines its strategy of acquiring and expanding one at a time.
The deal will result in Byju’s getting access to Toppr’s subscriber base and data. Digital space is dependent on economies of scale and by the words of Anindya Mallick partner at Deloitte analytics depended business model comes from data a firm has.
By using the data Byju’s can launch new ones and tailor the present products to better suit the market needs. Mallik also quoted that an organization that has access to data can predict the trends in the market and accordingly come up with products and services for the future.
Toppr based in Mumbai caters to the K-12 and test preparation market. The company claims to have an active monthly user base of 35 million. According to an industry expert, Byju’s may also leverage what Toppr is doing with schools. Toppr developed a Toppr school OS app that compiles the content for schools in one platform allowing schools to function online.
The merger of ed-tech space will continue as companies look to add more courses to build their portfolio, geographical expansion is also considered by firms while making acquisitions.
Byju’s with overwhelming cashflows is also looking to acquire Aakash Educational Services for a $1 billion deal. The company revenues increased at a compounded 125% in the last 3 years and the past year investors infused more than $1 billion bringing the total valuation of the company close to $11 billion.
Founder & CEO of Byju’s app Byju Raveendran in an interview said that opportunity lies not in the content or curriculum but in the way the content is personalized and delivered to students.