Exclusive: Byju’s is in negotiations to buy Vedantu for $800 million

In the last year, Byju’s has become the most active buyer in the Indian startup scene. In 2021, it had already bought seven companies and is in talks to buy another. According to two Entrackr sources, India’s most valuable startup is in talks to be acquired by Vedantu. “Talks between the two companies have been ongoing for a few weeks and have progressed to an advanced stage. According to one of the people that requested anonymity, Byju’s is offering Vedantu a $700-800 million contract.

This will be Byju’s sixth acquisition in 2021 if the deal goes through. In a cash-and-equity agreement, the company recently acquired Toppr, Great Learning, and Epic, all of which are situated in the United States. While Byju’s spent roughly $1,250 million in cash and stock to buy the three companies, it paid $1 billion for Aakash Educational Services.

Vedantu has also been in talks with new and existing investors to fund a new round at a valuation of roughly $1 billion, according to sources. “In the wake of Byju’s offer, the investment talks have taken a back seat,” said a second individual who did not want to be identified. According to sources, the deal’s details are nearly finalised, and assuming nothing goes wrong from here, the acquisition could be completed in a matter of weeks.

Byju’s has declined to comment on the situation.“It is entirely incorrect, and there have been no such negotiations. In answer to Entrackr’s questions, Vedantu CEO Vamsi Krishna said, “We are in the process of closing a round of fundraising at a significantly greater valuation.”

According to Fintrackr, Vedantu raised $100 million a year ago at a post-money valuation of approximately $500 million. Three of the company’s co-founders also sold their secondary shares at the company’s Series D investment in July 2020. KKR was in talks with the company to raise roughly $100 million. It, however, did not come to pass.

Vedantu’s core product includes online classes for students in grades 6 through 12, as well as resources for students in grades 1 through 12 and JEE. In May 2020, the company expanded into the children’s coding industry (ages 6 to 12). Vedantu’s acquisition, according to sources, will tighten the company’s grip on the K-12 market.

In the last two years, Byju’s and Unacademy have emerged as the top edtech acquirers. Since its founding, Byju’s has acquired 16 firms, while its closest competitor Unacademy has acquired 10 startups. Rheo Tv, a live game streaming network, was the most recent acquisition of the Gaurav Munjal-led company.

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