Tiger Global-backed edtech company Scaler readies $50 million M&A arsenal
- ByStartupStory | May 31, 2022
Scaler, an ed-tech unicorn backed by Tiger Global, would invest $50 million in mergers and acquisitions (M&As) in 2022-23 (FY23), seeing a consolidation opportunity despite a slowdown in investment and a decline in ed-tech business valuations.
Abhimanyu Saxena, the co-founder of Scaler said that the fundraising pause and correction in ed-tech valuations have offered a really nice opportunity for firms to try and look at acquisitions. He also added that he believes it is reasonable to conclude that the ed-tech sector will consolidate this year, and as a result, they have been aggressively looking at acquisitions. Some firms to which they have spoken, maybe in their early stages, are finding it difficult to raise capital in the current environment.
He further stated that acquisitions are often made to increase revenue or to explore additional markets but it’s neither of the two for them and elaborated that they have always looked at acquisitions to grow their staff and improve course distribution, along with the tech skills which come with it.
Scaler, an online computer education platform launched in 2019 by InterviewBit Technologies, provides a systematic approach for learners to upskill their technological talents. In February, the firm was valued at $710 million, making it a unicorn, or a company worth more than $500 million but less than $1 billion. Scaler’s classes, which last an average of nine months, assist students in obtaining positions at over 600 major technology organisations, including Amazon, Google, Microsoft, Facebook, Netflix, and Twitter, among others.
Scaler recently began operations in the United States, and Saxena stated that the US firm had an annualised revenue run-rate (ARR) of $10 million. Saxena stated that the company’s ARR for the India business is $75-80 million for 2022-23. (FY23). In March of this year, the firm acquired Appliedroots for $50 million, a provider of artificial intelligence and machine learning courses, barely a month after raising $55 million in its Series B fundraising round from Lightrock, Sequoia Capital India, and Tiger Global Management.
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