BrightChamps buys ex-Facebook execs’ edtech firm for $15m

India-based edtech firm BrightChamps has acquired Vietnamese startup Schola for US$15 million in cash and stock, marking the former’s second acquisition after buying financial education platform Education10x earlier this year.

(From left) Schola co-founder Aditya Gupta, BrightChamps founder Ravi Bhushan, and Schola co-founder Tran Le Thanh Nhu / Photo credit: BrightChamps

However, this is BrightChamps’ first purchase using its US$100 million war chest, which it put aside to acquire international companies by the end of the fiscal year ending March 2023. According to the edtech firm, it is looking to buy companies that allow it to enter a new vertical, deepen penetration in a specific region, or those that have a similar user base.

BrightChamps, which is currently valued at US$650 million, was founded in 2020 by Ravi Bhushan and caters to the K-12 edtech segment. Its curriculum offers coding classes for children and deals with topics such as AI, robotics, and virtual reality.

Bhushan told Tech in Asia that BrightChamps aims to boost Schola’s growth rate by 500% by the end of this financial year.

The Vietnamese firm was established in 2017 by Aditya Gupta and Tran Le Thanh Nhu, who have worked at companies like Facebook, Accenture, and Sea Group. Schola has offices in Singapore and Vietnam and helps children improve their English through one-on-one and group classes, which are taught through gamified STEM subjects.

However, the firm has since gone beyond English lessons by also offering life skills, effective communication, confidence-building, and leadership presentation courses.

Though Schola has students in 12 countries, its main markets are Thailand and Vietnam.

The startup – which says it has grown 3x in the past year without any capital injection and has remained profitable – caters to both rookies and mid-level English learners. It helps beginners develop listening and speaking skills, while also teaching advanced students about more nuanced lessons, such as public speaking and presentation.

Schola offers flexible courses, where students can complete credits at their own pace. Its pricing ranges from US$30 for six classes to US$1,600 for 240 classes.

While the firm will be a part of the BrightChamps group after the acquisition, it will run independently. However, HR, finance, and legal functions will likely be streamlined and tech stacks will be leveraged to benefit the two companies.

A bright future

The acquisition comes amid a “funding winter,” where startups are finding it harder to receive funding amid recessionary headwinds, making the environment more conducive to M&As.

See also: Indian edtech firm earmarks $100m for acquisitions, eyes SEA

“The macroeconomic conditions for acquisitions are favorable and hence we are even more aggressive,” Bhushan told Tech in Asia.