Vamsi Krishna led, Ed-tech giant Vedantu has acquired Ahmedabad-based start-up Pedagogy. The payment deal is fixed in cash and stocks. This is the second time Tiger Global backed company Vedantu buys another business after gaining doubt-solving app Instasoly in February 2020.
As per regulatory filings, the deal at which both the companies agree is, Vedantu will acquire 100% stakes in the Pedagogy and in consideration of that, the top 5 promoters of pedagogy (that collectively holds 75.06% of stakes in the company) named Archin Shah, Nipam Shah, Nita Shah, Aniket Shah, and Ritesh Gandhi will altogether receive Rs. 21.4 Cr. includes Rs. 15.23 Cr. in cash and Rs. 6.14 in Vedantu stocks.
The remaining 24.94% of stakes from other shareholders will cost around Rs. 7.1 Cr. that takes the total cost of acquisition around Rs 28.5 crore.
This news comes at a time when Vedantu is in the process of raising a $150 Mn fresh round while seeking a $1 billion valuation and entering the unicorn club.
As per the current shareholding structure of pedagogy, Archin Shah is the largest stakeholder in the company with a 39.22% holding, followed by Nita Shah and Nipam Shah, who hold 13.78% and 10.04% stake respectively. Ritesh Gandhi, Dhinal Patel, and Baldevbhai V Patel are other dignitary shareholders in the company, leaving only 15% with other investors.
Pedagogy, a six-year-old start-up, was running on a subscription model that gives users access to digital courses and popular books from reputed and trusted coaching centres and publishers across the country for NEET, JEE, CTET NET, and other entrance exams.
Currently, Vedantu Bengaluru-based offers online classes to students grades K1-12 for all significant boards and competitive exams. According to the sources with this acquisition, Vedantu is trying to find better opportunities in the competitive exam preparation market. Vedantu uses its widely reached distribution network to amplify the subscriptions offered by Pedagogy.
In April last year, Pedagogy raised around 2.9 Cr. in its pre-series Around funding initiated by Inflection Point Ventures and other investors. The company did not disclose the name of other investors participating in that round.
A big acquisition time continues from the last two years in the Ed-tech Industry in India. Vedantu’s big competitor Byju’s has already taken over WhiteHat Jr, HashLearn, Scholr Aakash Educational Services and is in advanced talks to acquire Gradeup, Toppr, and Great Learning.
Another Ed-tech mammoth, Unacademy, has also acquired WiFiStudy, Kreatryx, Coursavy, Codechef, Mastree, PrepLadder, NeoStencil, TapChef, Handa Ka Kanda, in the last two years and going to take up two more start-ups Adda 24×7 and Rheo TV.