Edukart bought by Paytm for an undisclosed value
Bengaluru: In one recent development in the education sector, Paytm, a payment services provider, bought one of the well known education startups in India, Edukart. This move was supported by cricketer Yuvraj Singh and the Paytm founder, Vijay Shekhar Sharma. It was in light of the failure to raise new revenue and funds to keep it going.
The purchase value was not disclosed since the buyout was done keeping in mind the skills, knowledge and expertise of the company staff, usually known as ‘Acquihire’.
The Founder and Chief Executive of Earth Education Valley Pvt. Ltd, the backbone of Edukart, Ishan Gupta, has moved over to Paytm as a Vice President of their seller financing team. Other employees of Edukart will also look after different roles within the seller services offered by Paytm, they said on the condition that they remain anonymous.
Founded in 2011 by Ishan Gupta, Stanford University alumni, and Mayank Gupta, an Indian Institute of Management Kozhikode alumni, it was a place which brought together degree, diploma and certificate courses along with coaching for entrance examinations.
Mayank Gupta quit back in December 2014 and now works at Zopper, an online electronics marketplace.
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Edukart was a well-known education startup in India; Image Courtesy: edukart.com
Edukart managed to raise $2 million in three rounds from various sources like Yuvraj Singh’s YouWeCan ventures and Angel Investors, etc. However, it did not manage to keep the word of $100 million sales for the course providers and annual enrolment of 10000 students, as mentioned by Ishan Gupta in the month of June 2015.
Industry experts say, apart from Simplilearn and Byju’s, no startup has been able to attract a large number of users and investors.