Byju’s is in advanced stages of talks to acquire rival, Toppr, industry sources said, indicating that the transaction could be around $150 million. Byju’s latest acquisition target underlines its aggressive expansion at a time online learning has been gaining currency due to the pandemic.
Byju’s and Toppr did not respond to FE’s query regarding the proposed transaction till the time of going to the press.
If the deal goes through, Byju’s will get access to Toppr’s base of subscribers and related user data. “In the digital space, it is largely about economies of scale. A lot of the business model will depend on the analytics which comes from the data they have,” said Anindya Mallick, partner at Deloitte. Byju’s can use the data to launch more relevant products and tailor the existing ones to cater to the market better. “The organisation which has access to data, can predict where the market will be going in the future and have products and services around that will be the ones that will be the clear winner,” Mallick said.