Reliance family office may acquire online education portal Embibe.com
Mukesh Ambani-owned Reliance family office may reportedly acquire a majority stake in online education portal Embibe.com, for nearly Rs. 100 crore. Embibe, the Mumbai-based education portal, was founded in 2012 by Aditi Avasthi and helps students prepare for various entrance exams. "The deal is as good as done," The Economic Times quoted a person with knowledge about the deal. Here's more.
This deal will allow Jio to venture into online education
According to another person familiar with the matter, the acquisition has been planned in accordance to the requirements of Reliance Jio Infocomm. "Reliance would need content when data becomes big, especially as Jio keeps increasing its holding in this segment. Education is only one sector where the data play was missing from the company's standpoint, which would be complete after the acquisition," he added.
Back in 2014, Embibe raised nearly $4 million from early-stage investment firm Kalaari Capital and Lightbox Ventures. In 2015, Embibe bought 100Markes, a medical and engineering entrance exam training portal, for an undisclosed amount. In 2016, Embibe raised another $1.5 million from Lightbox Ventures. Currently, Embibe helps students to prepare for medical, engineering and banking entrance exams.
A win-win deal
Reliance's acquisition of Embibe would mean that Kalaari Capital and Lightbox Ventures would now exit with healthy returns. Further, Reliance Jio can uses its digital space to tap into the online education sector. So, if the deal happens, it will be a win-win situation.