Bengaluru-based edtech startup Embibe, a subsidiary of Mukesh Ambani's Reliance Industries, has acquired a majority stake in e-learning products and services provider Funtoot.
The deal was capped at Rs.71.64 crore in cash, representing 90.5 percent in the equity share capital of Funtoot. Embibe has also proposed to make a further acquisition of Funtootâ€™s equity share of up to Rs.10 crore, provided the startup achieved its agreed milestones. The additional acquisition is expected to be completed by December 2021. If everything achieved as planned, Embibeâ€™s shareholding will increase to 100 percent of the equity share capital of Funtoot.
Founded in 2010 by Rajeev Pathak, Funtoot optimizes science and mathematics learning for K-12 students. Its platform is powered by an AI engine that understands the user based on responses, errors, communication, and other parameters. Based on this understanding, the user is provided with a learning track tailor-made for the child. The startup claims that it helps a student get a strong grasp on fundamentals, rather than rote learning or meaningless facts. It also claims to enable students towards self-correction of learning gaps and developing higher thinking, thanks to its contextual assistance.
Embibe, on the other hand, leverages AI-based data analytics to deliver personalized learning outcomes for students. Founded in 2019 by Aditi Avasthi, the Bengaluru-based company focuses on students across K-12 schools, higher education, professional skilling, vernacular languages and all curriculum categories across India and abroad.
With this majority stake acquisition in Funtoot, Embibe said it wants to optimize its digital technology platform to improve the experience of students.
This is Embibe's second acquisition this year, following the buyout of test prep startup MockBank to boost its presence in the government jobs segment. The company had earlier acquired an engineering and medical entrance exam training portal, 100Marks, in 2015. Reliance Industries has picked up a majority 72.69 percent in Embibe in April 2018 and agreed to invest over $180 million into the company over the next three years. It has since increased its stake to 85.38 percent in March 2019, and now to 90.5 percent.
Meanwhile, this deal was dubbed as one of the biggest acquisition bids in the education technology and deeptech space in India.