Paytm has acquired online education startup called Edukart and has absorbed its team of about 50 employees.
Paytm is owned by One97 Communications and is an online payment services company that has become quite popular in a short span of time. This company has acquired Edukart that is also backed by Yuvraj Singh. The founder of Edukart, Ishan Gupta, has joined Paytm and has been made the Vice President-Business of the company. He and this fifty member team will work together with Paytm staff to build an environment for seller services for the merchants on Paytm including finance, marketing and packaging services.
About the deal
According to the company this deal has no cash agreement involved, they have just signed an employee contract as of now. It is being said that the motive of the deal is to adopt the skills and expertise of the employees and therefore this is a no cash consideration.
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Talking about this deal Gupta said that there is no cash involved in this deal and Edukart is also separately talking about its strategies of selling its assets like website, content and brand to other education companies.
Reports also tell that the founder of Paytm, Vijay Shekhar Sharma, is also one of the angel investors of Edukart. So it comes of no surprise that the two companies have signed this deal.
Edukart was founded in the year 2011. The company also managed to raise a fund of $2million from Yuvaraj Singh’s YouWeCan Ventures. Edukart said that they have more than 10000 paid students registered with them and has partnership with around 120 course providers. Their partners include institutes such as Vidyamandir Classes and Bharati Vidyapeeth Deemed Institute and start-ups like Edureka and Toppr.
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Edukart also said that they are making this deal as they wanted to be on a safer side. Their aim was to grow on a faster scale, but keeping the market in mind, they feel that their employees can perform much better in a bigger organization like Paytm. Paytm has not revealed much about this deal, but the company is surely making its move towards expansion.