On 25 July, EdTech BYJU’s disclosed that it has acquired after- school learning app Toppr and Upskilling platform Great learning through a cash and stock deal.
In a regulatory filing, the firm stated that BYJU’s has acquired six startups in 2021 across India and the US.
As per reports, the firm is likely to spend around $600 million to obtain Great Learning and $150 million to acquire Toppr.
So far, in 2021 BYJUs have spent more than $2.2 billion for acquiring complementary businesses. With its recent Great Learning acquisition, BYJUs would now step into the upskilling and reskilling segment.
The upskilling and reskilling segment already has tough competitors that includes upGrad and Blackstone backed Simplilearn. With the latest acquisition, it is expected that BYJUs offerings for the international markets is likely to increase.
According to the filing cited by ‘Moneycontrol’ the firm will be obtaining nearly 25.83 lakh ordinary shares in Great Learning Pte. Ltd. for exchange of its Series F shares estimated at Rs 733.1 crore, allotted to the Great Learning existing shareholders LMK Holdings Ltd. and Matrix Benefit Trust.
Reportedly, BYJUs will also be offering 17,036 Series F preference shares that cost around Rs 425.9 crore (nearly $57.2 million), on the higher end of the price band to Toppr’s shareholders which includes Helion Venture Partners, Eight Roads, Alteria Capital, Ramakant Sharma who is the founder of Livspace, Kaizen PE, FH Learn LLP and Learn 2 Holdings Ltd.
The firm’s acquisition in Toppr would help it to consolidate and improve its market position in the K-12 learning segment. Under this segment, BYJUs is expected to face a tough competition from Softbank back Unacademy and Tiger Global back Vendantu.
BYJUs recent acquisition follows a week after it disclosed to spent $ 500 million to obtain US based Epic which is an online reading platform for kids. The firm aims to continue its spree of large acquisition to stretch its education services across the international markets and various categories.