Edtech Startup Acquisition: Vedantu Acquires Stakes in Deeksha

Edtech Startup Acquisition: In a $40 million agreement, edtech startup Vedantu bought the majority stakes in Deeksha, a website that helps students in grades 11 and 12 prepare for competitive examinations and boards. Deeksha, which was founded in 1998, has a strong partnership with educational institutions to prepare students for board exams and competitive exams at the same time.

According to Vedantu, the acquisition intends to combine Deeksha’s offline centers with Vedantu’s technology to create hybrid digital classrooms. With this investment, the Karnataka-based Deeksha will utilize Vedantu’s LIVE Classes, other educational technology, and content while bringing close to 13,000 of its students onto the platform.

Now that the pandemic is receding. Schools and universities have reopened, and tech businesses are placing a greater emphasis on a hybrid approach. A hybrid stack is one of the company’s top priorities, said Vamsi Krishna who is a Vedantu Co-founder and CEO.

“We still believe in edtech’s growth story and will continue to double down on areas of significant development”, Krishna adds.

According to Krishna, “In recent months, the business has made steps to streamline its staff and operations which has helped make their business contribution margin positive and bring the burn down “much lower.”

This is Vedantu’s third acquisition in the K12 market, and the business claims it will keep up its inorganic growth approach and expand its portfolio of “healthy companies.”

According to Deeksha co-founder Sridhar, “We will use Vedantu’s Live Class platform for our students as a result of this agreement, and we will offer a hybrid solution that maximizes learning results using individualized learning algorithms. We will be able to offer the same “Deeksha Experience” to millions of students in smaller cities and towns thanks to Vedantu’s hybrid learning methodology at a reasonable price “.