The most recent attempt by regional online learning platforms to take advantage of opportunities in the physical market was made by Indian EdTech Vedantu, which recently spent $40 million for a controlling stake in the educational startup Deeksha.
Vedantu, a Bengaluru-based business that was awarded unicorn status last year, said that they will integrate its technology into Deeksha’s offline facilities as part of their strategic partnership to create a “scalable hybrid model.” The 22-year-old company Deeksha prepares 11th and 12th students for competitive exams in 39 physical sites in three Indian states.
Vedantu began experimenting with the offline experience earlier this year and declared in Deeksha that it had found the appropriate partner to expand into the smaller Indian cities and villages. In an interview with TechCrunch, Vamsi Krishna, co-founder, and CEO of Vedantu, said that he has known Deeksha for 10 years and that when they started exploring synergies, it became clear that the two will gain a lot from working together.
Currently, Deeksha’s topline revenue is between $10 million and $12 million, and the firm is operating at a 21% EBIDTA margin, according to a source with knowledge of the situation. Regarding Deeksha’s financial position, Krishna remained mute.
Krishna, who is also a teacher, has taken a somewhat different approach to acquisition potential. More than a dozen consolidations in the Indian edtech industry have taken place over the previous two years, but Vedantu has typically avoided getting involved. We’re still open to purchasing other businesses, but I’m not aware of any specific targets. He stated that Vedantu lacks an acquisition plan.
