Indian Edtech behemoth, Byju’s has completed the takeover of Epic, a US-based company that provides an online reading platform to kids. As per reports, the cost of acquisition is $500 million, which makes it the second-biggest acquisition for Byju’s till now. That said, the company has not disclosed the cash and stock breakup of the purchase.
This takeover comes soon after the Bangalore-based company announced that it would be expanding its operations in international markets via Byju’s Future School.
How Will this Acquisition Help?
Here’s how this takeover will benefit Byju’s:
Strengthening foothold in the US:
Following the acquisition of Epic, Byju’s will be able to strengthen its presence in the US. The company will gain access to over 20 lakh teachers and 5 crore kids who are a part of Epic’s vast user base, which has doubled since the past year.
This considerable rise in the number of users is primarily due to pandemic-induced home learning. Besides financing this deal, Byju’s has announced that it will be investing an additional $1 billion in North America.
Exploring markets abroad:
It serves as a stepping stone for the company to expand its operations in other English-speaking markets. This company is already live in various locations abroad. It has made an impressive start, especially in Mexico and Brazil.
Venturing into a new division:
This takeover will also enable Byju’s to explore the online learning segment. Epic offers subscriptions of a digital library, having a collection of over 40,000 popular books from popular publishers for students who are under 12 years of age.
Following the takeover, Epic’s CEO Suren Markosian and the company’s founder will continue to be engaged in their current roles.
Before Epic, Byju’s acquired more than ten companies in recent years. One can refer to this table below to know what they are:
|Company Name||Year of Acquisition|
Out of all these acquisitions, its biggest takeover to date is Aakash. The cost of the deal was approximately $1 billion.
With Byju’s aiming to strengthen its presence in the US, this acquisition appears to be ideal for the company. The company seems to be is well-positioned to witness a significant surge in revenue for the year ending 31 March 2022.
Accordingly, Byju’s is set to adopt an aggressive approach to maximise its revenue. Furthermore, one must note that the company is planning to release its estimates in the next few months.
Frequently Asked Questions
- When is Byju’s launching its IPO?
India’s Edtech giant, Byju’s, is planning to go public before April 2023.
- Who are some of the investors of Byju’s?
Some of the key investors of Byju’s include Lightspeed Venture Partners, Sequoia Capital India, Chan Zuckerberg Initiative (CZI) and Tencent.
- What is the total amount of funding that Byju’s has raised till now?
Byju’s has raised funds worth $2.7 billion till now in over 18 funding rounds.