While the company did not disclose the deal amount, the acquisition is expected to be between $200 million and $220 million
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Edtech unicorn Byju's on Thursday confirmed the acquisition of US-based kids coding platform, Tynker, in a cash-and-stock deal, making it its ninth acquisition so far this year.
While the company did not disclose the deal amount, the acquisition is expected to be between $200 million and $220 million, individuals aware of the discussion told Mint.
The acquisition is expected to fortify Byju’s entry into the US market. Tynker, meanwhile, will look to enter newer geographies and also launch its solutions in India, through the acquisition.
Tynker co-founders Krishna Vedati, Srinivas Mandyam and Kelvin Chong will remain in their roles and continue building the platform.
Byju’s had earlier acquired kids coding platform WhiteHat Jr for $300 million in August last year. The company had launched its global brand, Byju’s Future School’ earlier this year, along with WhiteHat Jr, to provide a one-on-one live tutoring platform for kids from kindergarten to grade-8 (K-8).
It was targeting Latin American countries and Southeast Asia with its Future School offering.
The company is expected to follow a similar strategy with Tynker, allowing the latter to scale in international geographies. Further, Tynker is expected to integrate Future School offerings on its platform and offer more choice to students.
It will also look to integrate Byju's offerings for its business-to-business (B2B) product to schools in the UK, Australia and the US, to name a few.
“Coding is an important segment for us and also an important future skill. Tynker is an asynchronous learning product and anyone can just go to their platform and learn. This acquisition will enhance our complementary product offering in the coding segment. And if a student needs teacher support, we already have a synchronous offering (WhiteHat Jr). And the second is that we will bring Epic and Tynker to India. And we will be leveraging our US acquisitions for distribution of our current offerings as well," said Byju Raveendran, founder and chief executive officer (CEO), Byju’s in an interaction with Mint.
Raveendran also added that Tynker will continue to retain its brand name post the acquisition.
“With Osmo, Epic, and Tynker we are covering at least 80% of the kids in the age group of K-12 in the US," added Raveendran.
Currently, Tynker provides a creative coding platform for kids in kindergarten to grade 12 (K-12), enabling them to develop programming skills. It also provides gamified learning models to help children develop coding skills.
“We can bring creative tools and gamification to the Byju’s platform which we have worked on over the years. There is a lot of good curriculum integration that we can also explore with Byju’s focusing on future skills. And we want to continuously give choices to our students and build a community of global learners... What drives us is how we can build a global visionary company and how we can transform education," said Krishna Vedati, co-founder and CEO of Tynker.
The eight-year-old platform has been used by over 60 million kids and 100,000 schools in 150 countries, Tynker said in a statement. With US being the primary market, the company also has a presence in Australia, New Zealand and the UK.
“I think there will definitely be synergies, supporting B2B expansion in all the geographies, we have a presence in. So wherever Tynker has a presence, and is providing solutions to schools, we will definitely integrate it with Byju’s Future School offerings," said Srinivas Mandyam, the co-founder and chief technology officer of Tynker.
Byju’s currently has more than 100 million registered students and 6.5 million paid subscribers. It has already spent more than $2.5 billion to acquire edtechs in domains of upskilling, test prep and higher learning this year.