Edtech being one of the largest industries in the global market, continues to rise and shine. Digitization, artificial intelligence, and automation have driven the growth of the education sector more efficiently and effectively. With over one year since the Covid-19 pandemic, which acted as a catalyst to the industry, people are no longer receptive to digital tools and e-learning methods. Moreover, the industry saw investments of more than $5 billion over the past 5 years.
The month of July also emerged to be a period of acquisitions, mergers, and fundraising. With the world rolling in the Covid-19 waves, Edtech continues to witness growth with each passing day.
Let us see some of the key highlights of the Edtech industry in the month of July:
Bengaluru-based Edtech company Unacademy announced its acquisition of Rheo TV, a live game streaming platform on July 26th. The 2019 startup Rheo TV made professional game streaming a recognized career option. With nearly 200 million active gamers on smartphones and the increased internet penetration, the founders will now lead “Relevel”, India’s first hiring tests platform. Relevel gives job-seekers easy access to jobs in their dream companies by showcasing their skills.
The top-tier investment management company Blackstone acquires a major stake in the leading online Bootcamp and certification provider Simplilearn. With over 5 lacs learners across the globe, the upskilling platform is growing year on year. Blackstone’s first private equity investment in the digital learning space is yet another example of the boom of the Edtech industry. Apparently, it's a win-win situation for both companies. Blackstone can add significant value to Simplilearn as it continues to expand and vice-versa.
Continuing its acquisition spree, The giant Byju’s announced to acquire Edtech start-up Great Learning for $600 million in a cash-and-stock deal. It also closed the acquisition of Toppr in a $150 million deal. With these two, Byjus has acquired 6 startups so far in 2021. It is significantly looking for expansions nationally as well as internationally to scale up its operations. Acquisition of Great Learning is one way for BYJUs to enter the higher education segment. The company plans to spend another 400$ million to strengthen its position in this segment.
India’s A.I.-based Edutainment start-up, SP Robotic Works has raised $3 mn recently. The funding was led by Mount Judi India Growth Fund and saw participation from BCCL and its existing investors Indian Angel Network and multiple renowned angel investors as well. SP Robotic Works is an edutainment company that provides a platform for young children to learn Robotics, Coding, and other new-age technologies.
The Edtech startup aims to utilize these funds to boost the company’s user base and broaden the product portfolio. The funds will also be utilized to expand its current team. The company also plans to enter the field of Maths and Science.
Founded in 2015, Oliveboard is a Bengaluru-based startup offering an online exam preparation platform for government and banking exams. The company has recently procured funding of 23 crores led by IAN Fund and participation from Education Catalyst Fund (ECF) and Yukti Securities was also seen.
The startup aims to utilize this funding to increase the number of national-level courses and add state-level categories. The company will also invest in technology for interactive data-driven products making it a customized learning platform for individuals. The startup currently supports 50 government platforms and is planning to add more. The company’s co-founder Abhishek Patil said, ‘Given our success in the Banking & Insurance exam category, we are well-positioned to expand our offerings seamlessly into other newer and lesser served exam categories.’
The monthly recap of the Edtech acquisitions, mergers and fundraising is a clear sign of how fast the industry is growing despite the challenges of the Covid-19 pandemic. Needless to say, the recession came in as a boon to the Edtech industry. Stay tuned for what's next right here!