HCL Acquires Majority Stake In Vernacular Edtech Platform GUVI

IT giant HCL Group on Thursday (September 29) said it has acquired a majority stake in vernacular edtech platform GUVI. However, it didn’t disclose the acquisition cost. 

“HCL believes in the philosophy of multiplying the potential of not just individuals but communities at large. In line with the same belief, we are delighted to associate with GUVI to ensure that technology aspirants have ease of access to learning and upskilling via holistic courses in the native language,” HCL Corporation Director and Shiv Nadar Foundation Trustee Shikhar Malhotra said in a statement.

Through this investment, HCL is looking to address the critical technical skill gap across enterprises, Malhotra added.

Founded in 2014, GUVI’s edtech platform helps students learn coding in their native languages such as Tamil, Telugu, Kannada, Hindi, Bengali, and Arabic. As per its social media page, the startup currently has over 1.8 Lakh users. 

Speaking about HCL’s investment in the startup, GUVI cofounder and CEO Arun Prakash said he is looking forward to empowering a large pool of professionals by leveraging HCL’s global network.

“We are excited to join hands with HCL and believe that this association will be a game-changer for the edtech space servicing audiences in their mother tongue,” Prakash added. 

Bala Murugan and Sri Devi are the other two cofounders of GUVI. In July last year, the startup raised INR 6 Cr in its pre-series A funding round from Education Catalyst Fund.

HCL’s investment in GUVI comes at a time when the edtech startup ecosystem is facing significant troubles. From unicorn BYJU’S reporting massive losses to the likes of Unacademy laying off employees, the edtech startups have been hit by the reopening of schools and educational institutes following the removal of Covid-related restrictions and the ongoing funding winter. 

Besides, edtech startups like Udayy, Lido and Crejo.Fun have shut down. To deal with the challenge, the likes of Unacademy, BYJU’S and PhysicsWallah have also ventured into offline learning.

Meanwhile, edtech platform Bhanzu raised $15 Mn in its Series A funding round led by Eight Roads Ventures last week.

As per an Inc42 report, Indian edtech startups raised $2 Bn in the first half of 2022, reporting a 41% decline from the funding raised in the second half of 2021.