Edtech unicorn Byju’s ready to acquire Toppr in a $150 Mn deal

Edtech unicorn Byju’s ready to acquire Toppr in a $150 Mn deal.

Edtech unicorn Byju’s has emerged as the largest acquirer in the space. After the $300 million acquisition of WhiteHat Jr, the Bengaluru-based venture is in late-stage talks to acquire Toppr, one of its rivals in the K-12 space, according to three people familiar with the details of the transaction. 

“The two companies have been in talks for over two months and it has now reached an advanced stage,” said one of the people requesting anonymity. The deal that would value over $150 million is likely to be closed and announced soon.”

For Byju’s, it would be the third-largest acquisition after it took over kids-focused coding platform WhiteHat Jr for $300 million in August 2020 and recently signed a deal to acquire the brick and mortar test preparation company Aakash Educational Services for $1 billion. 

In June 2020, Byju’s was also in late-stage talks with Doubtnut to acquire the Gurugram-based startup. However, the talks failed due to differences in overvaluation. 

This acquisition of Toppr marks further consolidation in the space which now seems to have turned into a three-horse race with three large players: Byju’s, Unacademy, and Vedantu. 

To date, the Zishaan Hayath-led company has raised over $93 million, including a $46 million Series D round in July 2020 across equity and debt rounds. While the company’s current valuation couldn’t be ascertained, it was valued at around $60 million during an undisclosed investment from Axis Capital Partners in February 2018.

“Byju’s sees Toppr as a formidable player in K-12 space and the acquisition will bolster its positioning in the space. The transaction will largely consist of cash along with a little equity,” said the second person, requesting anonymity.

Byju’s declined to comment on the story whereas queries to Toppr did not elicit an immediate response. We’ll update the story in case they respond.

Since last year, there has been a strong interest of investors in the space. Almost every company has raised money in 2020. Toppr was no exception, but it wasn’t able to attract new investors. Its Series D round led by Foundation Holdings saw participation from only one existing investor: Kaizen Private Equity. 

Toppr’s investors include Eight Roads Ventures, Helion Venture Partners, Elevation Capital (previously SAIF Partners) and Alteria Capital.