This acquisition will help Byju’s deepen its presence in the US. Here are the top-line bullets you need to know.
Who are the parties to the deal?
- Epic: California-based Epic’s digital reading platform caters to kids aged 12 and younger. The company’s presence spans 90% of elementary schools in the US and has over 40,000 digital books from 250 publishers on its platform. The company user base includes 2M teachers and 50M kids.
- Byju’s: Bangalore-based Byju’s is a K-12 learning platform that provides online courses to students from primary through high school. The company’s platform caters to 100M students and has an annual renewal rate of 86%. In FY’21, Byju’s reported a revenue of INR 5,600 crore ($800M) and expects to generate $1B revenue in 12 to 15 months. This deal follows Byju’s acquisition spree in the last year, which includes Aakash for nearly $1B and WhiteHat Jr for $300M, among others, as it looks to consolidate its position in the edtech sector.
Why does the market matter?
With this acquisition, Byju’s steps closer to consolidating its position in the ed-tech space where:
- The education technology market is expected to grow at a CAGR of 16.1% and reach a value of $181.3B by 2025, according to MarketsandMarkets.
- Annual spending on educational technology is estimated to reach $342B by 2025, according to HolonIQ.
- Increased penetration of digital devices, the advantages of technological integration, and the pandemic-induced growth of online education media are some of the key enablers of this growth.