While edtech companies are gaining ground in India, the spotlight has been on the two-year-old edtech company Doubtnut, a doubt clearing app.
Byju’s and Unacademy are reportedly in talks to acquire Doubtnut, a doubt clearing application catering to students from the sixth grade onwards for mathematics and science subjects. Interestingly, all three edtech startups have been financed by the venture capital firm Sequoia Capital.
Before the COVID crisis led to more online training, Doubtnut took over 13 million users in total. As a consequence of its multilingual service, 90% of its customers reside in Tier II and Tier III cities. Doubtnut operates in 11 languages.
Byju’s and Unacademy are currently in negotiations regarding the acquisition of Doubtnut. According to sources, Byju’s is in advanced-stage talks to acquire Doubtnut for nearly $125 million, while Unacademy is also looking to purchase edtech and fintech startups India.
In January, Tencent invested $15 million in Doubtnut along with the participation of its current investors — AET, Japan, Sequoia Capital, Omidyar Network, and Ankit Nagori of Cure.Fit.
Why is Doubtnut a popular choice?
Before the COVID crisis led to more online training, Doubtnut took over 13 million users in total. The video sessions on the app illustrate the step-by-step procedure required to solve the problem. Doubtnut app, website, or even WhatsApp allows snapshots of the problem to be sent. As a consequence of its multilingual service, 90% of its customers reside in Tier II and Tier III cities. Doubtnut operates in 11 languages and offers work from home jobs to its employees. And Byju may have the ability to hit the next 400 million internet users in India.
Over the next few months, we expect to go abroad, but also in India. In a previous interview Divya Gokulnath, the co-founder and director of BYJUs, clarified that 65 percent of our students were outside of the ten top cities, showing us it is an aspirational product for students have no access to a good education. The application for immediate doubt resolution has answered more than 250 million questions spanning subjects like math, physics, chemistry, and biology.
Doubtnut could easily find material for state council schools for smaller areas. “When students are studying online or offline, the biggest challenge is to resolve their doubts. Almost 80% of the student’s time has to do practice and resolve doubts. Using technology and content, we provide solutions. Tanushree Nagori, the co-founder of Doubtnut, said that “we are the world’s largest depository of video solutions.”
Byju’s and Unacademy have the capital for an acquisition
With the lockdown of coronavirus and schools shutting down, Indian edtech startups saw unparalleled growth in numbers, and investors are betting heavily on space, too.
And Byju and Unacademy both stood at the forefront of raising large amounts of money from brands. Recently BOND, the global technology venture capital firm, grew Byju’s an unrevealed amount of finance. This is the first investment of BOND in India. Byju raised $200 million in February from General Atlantic, a private equity firm.