Uolo Technologies has acquired Bengaluru-based code-learning platform Tekie in an undisclosed amount. The transaction involves a cash component for Tekie’s two founders Naman Mukund and Anand Verma, in addition to the equity that will vest over three years and a performance-linked incentive.
Read also – Anicut Capital has received a commitment of Rs 75 cr from Self Reliant India
Uolo, a business-to-business (B2B) ed-tech startup, is backed by investors such as Blume Ventures, Omidyar Network, and Winter Capital, is looking at opportunities to partner with or acquire companies in the math learning and STEM (science, technology, engineering, and mathematics) said co-founder and CEO, Pallav Pandey, as per reported by The Economic Times.
According to Pandey, there are more than 400,000 private schools in India, and an estimated 120 million students attend them. The company has signed up 8,500 schools so far with a target of onboarding 50,000 schools on its platform by 2025.
Read also – Beauty & Fashion Tech Platform Perfect Corp. Partners with The Good Glamm Group
“The idea of Uolo is that we take ed-tech solutions to the masses in partnership with private schools. Technology in education can do wonders but it is coming at very expensive prices. The cost of ed-tech solutions today is Rs 20,000-Rs 30,000 a year, but people do not have that much money to spend. It has to become more affordable and for that to happen, it has to be available through schools,” he said.
Tekie, which was started by Naman Mukund and Anand Verma in 2017, offers schools a coding curriculum that is effective in over 100 schools. Investors in the startup included GSV Ventures, Multiply Ventures, and Better Capital.
“Once the schools are onboarded to a platform, they will need ed-tech products and solutions. Uolo has created a platform on which 8,500 schools have boarded, and now what we’re doing is that we’re bringing on education products. Education products typically have long gestation periods. So, partnering or acquiring is a better strategy. We had partnered with Tekie earlier, and were working closely with them,” Pandey said, referring to the acquisition.
Read also – actyv.ai Partners With RATNAAFIN to Facilitate Embedded B2B BNPL Offerings
Explaining the rationale behind going for an acquisition at a time when investors are shifting focus to business fundamentals such as profitability and cost of customer acquisition, Pandey said: “Unlike a lot of other ed-tech companies that spend Rs 20,000-Rs 30,000 to acquire a customer, we are tying up with schools and are practically a zero CAC (customer acquisition cost) company.”
“We are extremely cautious about how much we burn, but these acquisitions are planned to make Uolo a meaningful platform,” he added.
It is a platform through which teachers communicate content-rich information with parents and students. Schools across India are using UOLO to connect with parents and students. It is founded by Pallav Pandey.
Read also – [Funding alert] Fintech startup SarvaGram raises $35 million funding