The Indian edtech market is poised to touch $10.2 Bn by 2025 where K12 learning solutions are expected to account for 41% of the total edtech market. Further, B2B edtech startups claim to have seen a spike of 60-70% in demand post-pandemic with software-as-a-service (SaaS) models on the rise. Going with the momentum in the edtech space, B2B edtech startup Eupheus Learning has acquired K-10 B2B edtech startup ClassKlap in a $19 all-stock deal.
While Eupheus Learning, which provides in-classroom edtech products such as curriculum offerings like textbooks, worksheets, teaching guides and test papers for K12 students, focuses on premium schools with a distribution reach of 13K+ schools, ClassKlap provides its products to affordable private schools. Through the acquisition, ClassKlap will merge into Eupheus Learning, and the combined identity under Eupheus’ name will serve over 18K affordable as well as premium schools.
The acquisition comes shortly after Eupheus Learning raised $10 Mn in a Series C round from Lightrock India.
“Lightrock India is a common investor in both startups and will maintain a position on the board post the acquisition. Further, Varun Kumar and Naveen Mandava, cofounders of ClassKlap will join Eupheus’ board,” Amit Kapoor, cofounder, Eupheus told Inc42. Apart from ClassKlap founders, LGT Aspada and Michael & Susan Dell Foundation, join the Eupheus board along with the existing investors Sixth Sense Ventures, Yuj Kutumb, United Education Company (UEC) and Al Ryan Holding Company.
Founded in 2009 by Varun Kumar, Naveen Mandava and Janardan Singh, ClassKlap started as an education consulting firm. It currently provides integrated teaching through online live classes and personalised learning solutions to 5K+ affordable private schools and over 5 Lakh students. Along with conventional textbooks and learning kits, the startup also develops apps for school students, parents and teachers to increase learning, visibility and assessment capabilities.
The merger, that marks one of the largest acquisition in B2B edtech segment, will make Eupheus one of the largest players catering to both premia as well as affordable schools.
“With the acquisition of ClassKlap, we will now move into the affordable schools’ space to create a larger impact across schools and students. This will not just drive economies of scale, it’ll also shape the future innovation in the learning domain with analytics, enhancing the traditional channel of servicing schools by introducing hybrid solutions,” Kapoor informed.
Under this paradigm shift in the edtech segment, startups such as Classpro, mPowerO, Kneura, Upswing Learning put the emphasis on smaller schools under the B2B edtech fold, thus further opening up the market.