Introduction
The Indian edtech market has witnessed a surge in consolidation over the past two years, with several major players acquiring smaller startups to expand their offerings and reach. The latest development in this space is the acquisition of a majority stake by Vedantu in education chain Deeksha for $40 million.
About Vedantu and Deeksha
Vedantu
Vedantu is an edtech company based in Bengaluru, India, that offers online learning solutions to students preparing for competitive exams. Founded in 2018, the company has grown rapidly and became a unicorn last year. Vedantu’s platform provides live classes, personalized learning algorithms, and a range of other features designed to enhance student outcomes.
Deeksha
Deeksha is an education chain that operates physical centers across three Indian states. With a presence in 22 cities, the company offers coaching services for students preparing for competitive exams in 11th and 12th grade. Deeksha has been in operation for over two decades and has established itself as a trusted brand in the education sector.
The Partnership
The acquisition of a majority stake by Vedantu in Deeksha is part of the company’s strategic partnership to create a "scalable hybrid model." As part of this initiative, Vedantu will integrate its technology into Deeksha’s offline centers, enabling students to access high-quality online learning resources and teachers through streaming technologies.
The Benefits
According to Vamsi Krishna, co-founder and CEO of Vedantu, the partnership with Deeksha marks an important milestone in the company’s journey. "We have been tracking Deeksha for 10 years and believe that our technology can enhance their offerings and reach," he said in an interview with TechCrunch.
The acquisition is expected to benefit both companies, as Vedantu gains a strong offline presence and Deeksha gets access to cutting-edge technology and expertise.
Why Offline Matters
While online learning has grown significantly during the pandemic, offline coaching centers remain a popular choice among students. In fact, research suggests that only a sliver of India’s 300 million school-going population uses any online education service.
To tap into this opportunity, top edtech giants such as Byju’s, Vedantu, and Unacademy have begun experimenting with offline experiences. Byju’s, for instance, acquired Aakash, another physical online institute, for nearly $1 billion last year.
The Omnichannel Model
GV Ravishankar, a partner at Sequoia India, believes that the omnichannel model – which combines offline and online learning – will be a key driver of growth in the edtech sector. "Offline learning is not going away anytime soon," he said at an event earlier this year. "In fact, online complements offline really well, and together as a package, the omnichannel model is going to steer and be here for a long period of time."
The Future of Edtech in India
As the edtech sector continues to evolve in India, partnerships like the one between Vedantu and Deeksha are likely to become more common. With a focus on creating scalable hybrid models that combine offline and online learning, companies will be able to reach a wider audience and improve student outcomes.
Conclusion
The acquisition of a majority stake by Vedantu in Deeksha for $40 million marks an important development in the Indian edtech market. As companies continue to experiment with offline experiences and omnichannel models, one thing is clear: the future of education in India will be shaped by innovative partnerships and technologies that enhance student outcomes.
