Blackstone Acquires Simplilearn for $250 Million

Blackstone Acquires Majority Stake in Simplilearn

Blackstone is set to acquire a majority ownership position in Simplilearn, an edtech startup with headquarters in Bangalore and San Francisco, for a sum of $250 million.

Simplilearn's Operations and Focus

Simplilearn operates a namesake online bootcamp designed to equip individuals with in-demand skills. These include data science, artificial intelligence (AI), machine learning, and cloud computing.

Strategic Partnerships with Leading Institutions

The company has established collaborative partnerships with numerous universities and colleges. These include prestigious institutions like IIT Kanpur, Caltech, and Purdue University.

Students who enroll in and successfully complete courses through these partnerships receive certification from the respective institutes.

Impact and Reach

Founded 11 years ago, Simplilearn conducts approximately 1,000 live classes on a monthly basis.

The platform reports having assisted over 2 million professionals and 2,000 companies, including major players like Facebook, Microsoft, and Amazon, across more than 150 countries.

Investment History and Backers

Prior to this acquisition, Simplilearn was last valued at $80 million during its Series C funding round in 2016.

Early investors in the company include Brand Capital, Kalaari Capital, Helion Venture Partners, and Mayfield.

According to Tracxn, the startup had previously raised around $34.4 million in funding.

Investor Exit and Leadership Retention

As part of this transaction, Kalaari Capital, Helion Venture Partners, and Mayfield Fund are exiting their investments.

However, it's been reported that the existing leadership team of Simplilearn has retained their ownership stakes.

Founder's Statement on the Acquisition

Krishna Kumar, founder and CEO of Simplilearn, stated that the pandemic has significantly increased the demand for digital skills.

He believes this is an ideal moment to advance the company’s mission to become the world’s largest digital skilling provider.

Blackstone's Value Proposition

Kumar expressed confidence that Blackstone’s resources, commitment to business development, and extensive global network will facilitate new partnerships with businesses and universities.

This will support Simplilearn’s continued global expansion.

Context within Blackstone's Investment Portfolio

This acquisition follows Blackstone-backed Aakash Education Services’ recent acquisition by Byju’s for approximately $1 billion.

Blackstone has also made a subsequent investment in Byju’s.

Blackstone's Strategic Outlook

Amit Dixit, head of Asia for Blackstone, highlighted this as the firm’s first private equity investment in a consumer technology company in Asia.

He expressed excitement about collaborating with Krishna Kumar and Simplilearn’s management team to accelerate growth and establish the company as a leading global digital learning platform.

Dixit also indicated that this investment is anticipated to be the first of many similar ventures in Asia.