Merger and Acquisition

Vedantu buys test prep platform Deeksha for $40 million

• ByStartupStory     |    October 14, 2022

In a $40 million cash and equity agreement, edtech unicorn Vedantu announced on Thursday that it has acquired Deeksha, a platform for board and competitive exam preparation. With the acquisition of Ace Creative Learning, Deeksha’s parent company, Vedantu hopes to strengthen its hybrid teaching strategy. In June, it  had launched its first offline location in Muzaffarpur.

Vedantu would have access to Deeksha’s 13,000 students as well as around 40 offline centres spread across Telangana, Andhra Pradesh, and Karnataka as a result of the acquisition. Additionally, it will assist Vedantu as it expands its venture into tier 3 and tier 4 towns in an effort to open up new online learning niches. Deeksha will make use of Vedantu’s live courses platform, as well as its content and technological resources, to provide its students hybrid (online and offline) learning.

Vedantu announced the introduction of Ai Live sessions in April in order to reduce the cost of its courses by 70% and set itself apart from competitors in terms of affordability. Vedantu will take on 900–1000 Deeksha staff as part of the agreement. In the upcoming months, Deeksha will launch new offline centres and continue to oversee Vedantu’s offline venture. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for Deeksha have been running at 20–21%, with a top line of Rs 90–100 crore.

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