February 16, 2021 3:01:22 am
Byju’s is in advanced stages of talks to acquire rival, Toppr, industry sources said, indicating that the transaction could be around $150 million. Byju’s latest acquisition target underlines its aggressive expansion at a time online learning has been gaining currency due to the pandemic.
Byju’s and Toppr did not respond to FE’s query regarding the proposed transaction till the time of going to the press.
If the deal goes through, Byju’s will get access to Toppr’s base of subscribers and related user data. “In the digital space, it is largely about economies of scale. A lot of the business model will depend on the analytics which comes from the data they have,” said Anindya Mallick, partner at Deloitte. Byju’s can use the data to launch more relevant products and tailor the existing ones to cater to the market better. “The organisation which has access to data, can predict where the market will be going in the future and have products and services around that will be the ones that will be the clear winner,” Mallick said.
Mumbai-based Toppr services the K-12 and test preparation market. It claims to have 35 million monthly active users.
Byju’s is also reportedly inking a deal to acquire brick and mortar test preparation company Aakash Educational Services in a whopping $1 billion deal. Last year, the Bengaluru-based company had acquired WhiteHat Jr in a $300 million transaction.
Last year, investors infused over $1 billion in Byju’s valuing the firm at more than $11 billion. In all, the firm has raised close to $2 billion. fe
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