Unicorn in edtech According to persons familiar with the discussions, Byju’s is in talks to buy Chegg, an online teaching startup located in California.
According to sources, Byju Raveendran, the company’s founder and CEO, has not confirmed talks to purchase Chegg, which was started in 2005 by Osman Rashid and Aayush Phumbhra and has a market capitalization of $2.2 billion.
Raveendran, on the other hand, believes that the next twelve months will be ideal for acquiring businesses.
“We have made large, multi-hundred-million-dollar, acquisitions. Globally, we would have made four out of the top ten edtech acquisitions,” he said. “We are looking at large multi-billion-dollar acquisitions … that’s why we are accessing all kinds of capital. We are exploring acquisitions in the US.”
He believes that now is an excellent moment to consolidate since firms are accessible at competitive valuations.
Byju has also been seeking a public listing in the United States through a special purpose acquisition company (SPAC), which is a corporation formed for the purpose of acquiring or merging with another corporation. According to sources familiar with the situation, if it acquires Chegg, a publicly listed company in the United States, it may also assist the edtech firm in going public.