Reliance Industries-backed educational technology firm Embibe has acquired a 90.5% stake in e-learning products and services provider Funtoot for Rs 71.64 crore.
Embibe has also proposed to invest Rs 10 crore more, linked to certain undisclosed milestones, following which its shareholding will increase to 100%. The additional investment is expected to be completed by December 2021, Reliance said in a stock market disclosure.
This acquisition will help Embibe accelerate development initiatives of its ed-tech platform, the company said in a statement. Embibe has built an Artificial Intelligence-based education platform that uses data analytics to deliver personalized learning outcomes for each student.
Bengaluru-based Funtoot, started in July 2010, develops online learning products for K12 education, apart from providing students with practice, testing and analysis modules for mathematics and science subjects. The startup counts Inventus Capital Partners and Mumbai Angels.
Funtoot reported net profit of Rs 27.74 lakh on revenue of Rs 7.34 crore for the financial year 2019, compared to a net profit of Rs 2.46 crore on revenue of Rs 9.3 crore in financial year 2018.
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.
It had earlier acquired an engineering and medical entrance exam training portal, 100Marks, in 2015.
Reliance Industries picked up a majority 72.69% in Embibe in April 2018 and has since increased its stake to 85.38% as of March 31, 2019.
