Byju's Acquires Tynker for $200 Million - US Expansion

Byju’s Acquires Tynker to Expand Global Reach

Byju’s announced on Thursday the acquisition of Tynker, a prominent coding education platform based in California. This purchase represents the latest in a series of significant acquisitions undertaken by the Indian edtech company as it strives for rapid international expansion.

Deal Details and Company Overview

While the financial specifics of the deal remain undisclosed, sources familiar with the transaction have indicated to TechCrunch that Byju’s is investing approximately $200 million in the acquisition.

Tynker operates a coding platform of the same name and has established partnerships with notable organizations including BBC Learning, Google, Microsoft, Mattel, and NASA. The platform has attracted a user base exceeding 60 million students, according to Tynker’s founders.

Gamified Learning and Global Presence

Founded eight years ago, Tynker employs a gamified approach to learning, utilizing elements like robots and drones to help students grasp complex coding concepts. This method aims to enhance engagement and participation.

Co-founder Srinivas Mandyam stated that Tynker has a presence in over 100,000 schools across 150 countries. The company’s co-founders – Mandyam, Krishna Vedati, and Kelvin Chong – will remain with the firm following the acquisition.

Vision for the Future of Coding Education

Krishna Vedati, Tynker’s chief executive, emphasized the importance of equipping children with critical thinking skills. He stated, “At Tynker, we believe that kids of all ages should develop the critical thinking skills needed to become the ‘makers of tomorrow’.”

Vedati further explained that Tynker focuses on aligning learning experiences with students’ interests, such as game development, animation, and Minecraft modification. He believes that joining Byju’s will enable the company to foster STEM skills globally, preparing students for future academic and career success.

Strategic Alignment with Byju’s Portfolio

Byju Raveendran, founder and CEO of Byju’s, highlighted the strategic fit between Tynker’s asynchronous learning model and Byju’s existing offerings. Last year, Byju’s acquired WhiteHat Jr., a coding platform specializing in synchronous classes, for $300 million.

Raveendran noted that Tynker’s offerings are complementary to those of WhiteHat Jr., broadening the scope of Byju’s educational resources.

Aggressive Expansion Through Acquisitions

The acquisition of Tynker adds to Byju’s growing portfolio, which now serves over 100 million registered users, including 6.5 million paying customers worldwide. This year alone, Byju’s has also acquired Scholr, Aakash Institute, Hashlearn, Epic, and Great Learning, totaling over $2 billion in cash and equity transactions.

Recently, Byju’s also acquired Gradeup, backed by Times Internet, for an undisclosed sum. Raveendran confirmed that the company continues to actively pursue further merger and acquisition opportunities.

Exploring an Initial Public Offering

Having raised over $1.5 billion since the start of the pandemic, Byju’s is also considering an initial public offering (IPO). The company has initiated discussions with investment banks, with preliminary valuations reaching up to $50 billion, as previously reported by TechCrunch.

Raveendran acknowledged that an IPO is “on the cards,” but indicated that it is premature to provide a specific timeline.