Top exec: India's Vedantu is not in negotiations to sell to Byjus
Vedantu, an Indian online learning platform, has not committed to selling the company to Byjus, according to a top executive.
Entrackr reported that Byjus offered $700 million-$800 million to buy Bangalore-based Vedantu. The company counts Accel Capital and GGV Capital as its investors.
Vamsi Krishna, Vedantu's co-founder and chief executive, stated that any speculation about Byjus' involvement in a merger or acquisition is completely false.
Byjus, which acquired more than half a dozen startups in the past year, declined to comment.
Indias most valuable startup, Byjus, has held conversations with multiple education firms in recent quarters as the Bangalore-headquartered giant looks to expand its footprint and broaden its product offerings by both organic and inorganic means.
According to four people familiar, the startup reached out to Vedantu and Unacademy last year and offered them each $1 billion. One of the people said that Vedantu and Byjus have not reengaged with each other this year.
Two sources close to the matter said that Vedantu is currently in advanced stages of closing a new financing round. It would be valued at more than $1 billion. They said that the round should close in a matter of weeks.
Numerous startups have emerged in recent years to tap India's education market, where over 200 million Indians attend school. Vedantu and Unacademy lead the market, while younger companies such as Teachmint or Classplus report a rapid growth rate in recent quarters due to more students choosing online learning platforms.
In a report sent to clients last week, Bernstein analysts stated that India's K-12 education market will grow 2.5x and reach $120 billion by 2025. They wrote that online K-12 education will grow 7x and reach $5 billion by 2025. This is due to strong growth in user base, increased penetration, and expanding product offerings.