Vedantu Denies Sale to Byju's

Vedantu Denies Acquisition Talks with Byju’s

A senior executive from the Indian online learning platform, Vedantu, stated on Friday that the company is not currently considering a sale to the edtech leader, Byju’s.

Reported Acquisition Offer

Earlier that day, Entrackr, an Indian news source, reported that Byju’s had made an offer to acquire Vedantu, based in Bangalore, for a valuation between $700 million and $800 million. Vedantu’s investors include Accel and GGV Capital.

Vedantu’s Response

In an interview with TechCrunch, Vamsi Krishna, co-founder and CEO of Vedantu, firmly dismissed the reports. He confirmed that any speculation regarding discussions with Byju’s concerning a potential acquisition or merger is “absolutely 100% inaccurate.”

Byju’s Stance

Byju’s, which has completed the acquisition of more than six startups this year, chose not to provide a comment on the matter.

Byju’s Expansion Strategy

As India’s most highly valued startup, Byju’s has been actively engaging in discussions with various education companies in recent quarters. This strategy aims to expand its market presence and diversify its product portfolio through both organic growth and strategic acquisitions.

Previous Acquisition Attempts

According to four sources with knowledge of the situation, Byju’s previously approached both Unacademy and Vedantu last year, offering approximately $1 billion to each. However, one source indicated that Byju’s and Vedantu have not resumed negotiations this year.

Vedantu’s Funding Round

Separately, Vedantu is nearing completion of a new financing round. Two sources familiar with the deal have indicated that this round would value the company at over $1 billion. The closure of this round is anticipated within the coming weeks.

Growth in the Indian Edtech Market

The Indian education market has seen a surge in new startups in recent years, capitalizing on the large student population – exceeding 200 million individuals enrolled in schools. Vedantu, Unacademy, and Byju’s currently dominate the market.

Emerging companies like Teachmint and Classplus have also experienced significant growth in recent quarters, driven by the increased adoption of online learning platforms, particularly in the wake of the pandemic.

Market Growth Projections

Analysts at Bernstein predict that India’s K-12 education market will grow 2.5 times its current size, reaching $120 billion by 2025. Their report to clients highlights that online K-12 education is projected to increase sevenfold by 2025.

This growth will be fueled by a rising user base, increased online penetration, and the expansion of available product offerings.