The report, which cites three sources, said the two companies have been in talks for the past two months and that a deal could be finalised sometime soon.
News of the potential acquisition comes at a time when Byju’s
has reportedly signed a deal to buy Blackstone-backed offline test preparation company Aakash Educational Services for as much as $1 billion.
A Byju’s spokesperson declined to comment on ET’s queries. Queries to Toppr’s CEO Zishaan Hayath also went unanswered.
Byju’s, which is by far the largest player in India’s edtech space, is looking at consolidating its position in the market. Last year the company
acquired WhiteHat Jr, a coding platform for children, for $300 million.
said the deal to acquire Toppr would largely be in cash, with some equity. This is largely in line with the all-cash $300 million deal through which Byju’s acquired WhiteHat Jr as well.
Byju’s is joined by smaller rivals Unacademy and Vedantu in scooping up smaller players in the market, buoyed by quick funding rounds and soaring valuations after edtech received a major boost due to the Covid-19 pandemic.
Valued at $12 billion and flush with cash after raising around $1 billion in 2020, Byju’s claims it recorded revenues of Rs 2,800 crore in FY20 and in last July said it was clocking an annual revenue run rate of Rs 6,000 crore.
The company says it had 40 million free users of its online platform prior to the pandemic, and added another 20 million last year. While it hasn’t provided similar numbers for paid users, the company had last said that it had over 3.5 million paid subscribers and was profitable.