Edtech giant Byju's acquires online exam preparation platform Gradeup
- IBEF
- September 8, 2021
Gradeup, one of India's leading online exam preparation platforms, has been acquired by Byju's, the world's most valued edtech firm with a US$ 16.5 billion valuation. The deal's value was not disclosed by the firm.
Byju's foothold in the fast-growing online competitive test preparation area will be bolstered as a result of the agreement, which will also take use of Gradeup's pedagogy and student reach. It would help the company gain a competitive advantage over competitors such as Unacademy, Simplilearn, UpGrad, Amazon Academy, and conventional education institutes in the US$ 180 billion education market in the country.
Gradeup will be renamed Byju's Exam Prep, and it will serve students who are studying for over 150 examinations in 25 different categories. Government employment and PG entrance examinations such as IAS, GATE, CAT, Bank PO/Clerk, Defence, and UGC-NET would be covered.
Mr. Raveendran, founder and CEO of Byju's, said, “With Gradeup on board, we will be able to further scale and expand our test-prep solutions in postgraduate level exams. Gradeup has already proven its worth, and we're looking forward to working with the experienced staff. Our goal is to combine our complimentary talents and expertise to provide interesting and individualised learning experiences.”
Gradeup's CEO, Mr. Shobhit Bhatnagar, said the company has created a highly specialised offering for students preparing for competitive exams by combining live classes, assessments, and high-quality study materials.
“We will accelerate our expansion and increase our reach across the country along with Byju's,” Mr. Bhatnagar added. “We will also take use of their content capabilities to enhance our present product offering and expand our test coverage.”
Over 100 million students have registered for Byju's, including 6.5 million paying members. Gradeup's addition would enable Byju further scale up in the test preparation market, also Aakash Educational Services Ltd. has been a member of the company since May 2021, giving its highly effective learning ecosystem. Students will also have access to a high-quality, customised, and comprehensive learning experience, with a wide range of test prep programmes and services to select from, according to the company.
As the pandemic has accelerated the popularity of online education, Byju's is on an acquisition spree in India and throughout the world. While schools and workplaces are closed, students and professionals are eager to improve their abilities. According to reports, the start-up has bought approximately seven firms in India and the United States this year, spending more than US$ 2 billion on these acquisitions in the last six months. Byju's, located in Bengaluru, is projected to dominate the edtech industry via the inorganic method.
The US$ 1 billion acquisition of New Delhi-based Aakash Educational Services (AESL) in April and the US$ 600 million acquisition of Singapore-based Great Learning, a prominent worldwide leader in professional and higher education, are two examples of similar agreements.
Byju's paid US$ 500 million for Epic, a digital reading platform located in the United States. Byju's paid US$ 300 million for Mumbai-based coding start-up WhiteHat Jr in August of last year. Byju's purchased Osmo, a US-based educational game firm, for US$ 120 million in stock and cash in 2019. Byju's wants to become one of the major companies in the market in the United States, with a goal of US$ 1 billion in revenue in the next three years.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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