Reliance Industries-backed online education platform Embibe has acquired a 90.5% stake in Dreams Edusoft, which owns Funtoot, a learning platform for children, for around $10 million.
The deal creates exits for Funtoot’s early investors, venture capital firm Inventus Capital Partners and angel investor group Mumbai Angels Network. The returns realised by the two investors couldn’t be ascertained at the time of publishing this report.
In 2013, Funtoot raised $2 million in a Series A round led by Inventus, along with Mumbai Angels Network.
RIL, which owns and operates Embibe through its subsidiary Indiavidual Learning, will make a further investment of around $140,667 in the Bengaluru-based education technology company if it achieves the milestones set out in the deal.
Indiavidual Learning will acquire a further stake in Funtoot by December 2021, taking its shareholding to 100%. The acquisition is expected to accelerate Embibe’s digital education technology platform development initiatives, RIL said in a statement.
Founded in 2010 by Rajeev Pathak, Funtoot uses technology to develop online learning products in mathematics and science for students appearing for higher matriculation examinations through various modules, to supplement classroom teaching deficit, created due to the homogeneous nature of modern schooling methods.
The platform posted a turnover of Rs 7.3 crore in the financial year ended March 31 on net profit Rs 27.7 lakhs, the statement said. It claims to have on-boarded over 75,0000 from 120 schools.
Pathak, who is also the CEO, has studied at BITS, Pilani Indian Institute of Management, and has over 20 years experience most of which was spent at information technology services major Wipro.
Embibe uses artificial intelligence, data science and machine learning to provide a range of online coaching for various competitive exams, entrance exams and school going students. The platform was acquired by RIL in June 2018 from its founders Aditi Avasthi and Nishant Menon. RIL had said at the time that it will infuse $180 million in the platform to aid further growth.
The company is said to have acquired MockBank, an online mock-test platform for public sector job exams for an undisclosed sum. Embibe currently has modules for bank and railway jobs.
Among other deals in the education space, math education platform Cuemath is in line to raise $5.5 million in a Series B round from new investor Manta Ray Ventures and returning investors CapitalG and Sequoia Capital India.
In November, Lido Learning raised $3 million in a Series A funding round from Ronnie Screwvala, promoter of education platform Upgrad, and Ananth Narayanan, chief executive at e-pharmacy Medlife, among other high networth individuals.