According to the latest sources, the Indian origin’s online education pioneer Byju will be buying U.S.-based kids’ digital reading platform Epic. The deal is estimated to be around $500 million. During the pandemic, home-learning has increased and the market fueled by remote education has increased the value of online learning and teaching platforms. In its attempt at global expansion, Byju will now be purchasing the US-based Epic.
The US-based digital reading platform, Epic, boasts more than two million teachers and over 50 million kids in its user base. This user base will provide a tremendous boost to the growth of India-based Byjus. Not to mention the fact that Byju itself is backed by Naspers Ltd., Tiger Global Management, Chan Zuckerberg Initiative, and several others. The company was valued at about $16.5 billion in its April funding round this year.
Byjus already has two other businesses in the US. The company already offers live one-on-one online tutoring in math and coding via Byju’s Future School, and it also purchased the augmented reality games creator Osmo two years ago. Epic will be Byjus’s third main US asset. These three businesses are set to bring in about $100 million in revenue this year for the company.
“All three formats are strong. We are going deeper in the U.S., we are living in other English-speaking markets and have made a solid start in non-English-speaking markets starting with Mexico and Brazil.”
After the deal though, the CEO Suren Markosian and fellow founder Kevin Donahue will remain in their respective roles in Epic. The US-based company is of great value to the Byjus, as Epic ranks as the world’s largest digital reading platform for kids. It boasts of having 40,000 pieces of content that are licensed from more than 250 brands including Harper Collins and Sesame Street in the form of e-books, audio tracks, read-to-me, and video books.