Edtech Unicorn Byju's is set to acquire one of its Toppr rivals in the K-12 (Kindergarten to Grade 12) learning segment. Media reports say the deal, which is expected to be officially announced soon, is between €150 million and €160 million. Sources said the deal will be mostly cash with a small part of the equity. For Indian edtech unicorn Byju's, this will be the third major acquisition after buying coding platform WhiteHat Jr for €300 million in August 2020 and the €1 billion deal to take over the test prep company. Aakash Educational Services. The Toppr acquisition signals Byju's dominance in the market where the other two major players are Unacademy and Vedantu.
Byju plan for the K-12 segment
The two companies have been in talks for two months and a deal could be finalized shortly, according to reports. Byju's idea is to establish its hegemony in the ultra-competitive K-12 segment, where Toppr was well established. Bangalore-based Byju is valued at €12 billion and has been able to raise significant funds as the pandemic and lockdown have increased demand for its online lessons. Byju's, considered India's second most valuable startup, is backed by the Chan Zuckerberg Initiative, Tiger Global Management and Bond Capital, from Facebook founder Mark Zuckerberg, co-founded by Silicon Valley investor Mary Meeker. Byju App is for students from kindergarten to grade 12. Byju App offers math and science lessons through video animations and games. More than 70 million users have logged in from more than 1.700 cities across the country, Byju said last September. Of these, more than 4,5 million are paying users. On the other hand, investors in Toppr include Eight Roads Ventures, Helion Venture Partners, Kaizen Private Equity, Elevation Capital, and Alteria Capital.