Mark Zuckerberg-backed edutech company Byju’s Learning has acquired global education company Pearson Plc’s online tutoring provider Tutorvista and e-learning content company Edurite for an undisclosed amount. Founder Byju Raveendran told the publication that the acquisition will allow them to expand product offerings and provide access to new markets when they launch international products. It’s worth noting that about 70% of the traffic on Tutorvista’s website originates from the US. Following the acquisition, the teams at Tutorvista and Edurite are expected to be merged into Byju’s.
This is Byju’s second acquisition of 2017: it had acquired Bangalore-based Vidyartha, a data-driven platform which offers customized learning to students, in January this year.
Commenting on the acquisition, Byju Raveendran, founder & CEO, BYJU’S said, “This partnership will enhance our product offerings and give us access in some of the new markets when we launch our international products. We are excited to work with the talented and experienced team who will come on board as a part of this acquisition.”
Just over three months back, Byju’s had raised an undisclosed amount of funding from Belgium-based investment firm Verlinvest, and had said that the fresh funds will help them expand operations into foreign markets and acquire new firms. At the time, the company had claimed it had around 4 million paid annual subscribers, and that it had an average engagement rate of 40 minutes per day per user, with over 90% of users renewing their subscriptions.
To date, Byju’s has raised over $150 million in venture funding from a diverse set of investors some of who include Sequoia Capital, Mark Zuckerberg’s The Chan-Zuckerberg Initiative, and the International Finance Corporation, among others.
In February 2013, Pearson had acquired the remaining 20% stake in Tutorvista for an undisclosed amount. Prior to this, Pearson had invested around $139.5 million in Tutorvista: including $127 million in January 2011, through which the company had secured a controlling stake of 76%, and $12.5 million in June 2009. In 2011, the company further increased its stake in Tutorvista to 80% from 76%, although the details of this transaction were not disclosed. Tutorvista had acquired Edurite, which was co-founded by Srikanth Iyer, former CEO of Pearson India, in 2007.