Brightchamps, a K-12 (kindergarten to class 12) focused startup, has bought Metamorphosis Edu, a platform offering entrepreneurship courses to young students, in a cash and stock deal for an undisclosed amount.
The deal will help Brightchamps in facilitating new compliance for schools under the National Education Policy (NEP), which demands teaching students next-generation life skills, the company said in a statement on April 27.
As a part of the transaction, Metamorphosis' founder Pavan Allena will lead Brightchamps’ B2B (business-to-business) vertical under its CFO (chief financial officer) Amit Kumar to enable NEP-compliance for schools across the four next-gen life skills that Brightchamps offers.
“Metamorphosis is the perfect partner to help us achieve this goal of substantially widening access to our curriculum at lower price points through partnerships with schools. We’re confident that this acquisition will help both teams achieve great things,” Ravi Bhushan, founder, CEO, Brightchamps, said in a statement.
Founded in 2020 by Pavan Allena, Metamorphosis Edu is an ISB-incubated company, offering courses in 'next-generation' life skills to school kids. The company has only raised small cheques from angel investors to date, according to data on Tracxn.
“With the might of the 3,000-people-strong Brightchamps team thrown behind us, we will be able to cater to school requirements based on different learning needs faster, at scale, and more cost-effectively. All of which will accelerate access, which is the ultimate goal,” said Allena in a statement.
Metamorphosis Edu marks Brightchamps' second acquisition in recent times. In August last year, the company acquired Singapore-based Schola, a communications and English-learning platform in a cash and stock deal of $15 million. In June last year, Bhushan said that the company would earmark $100 million for mergers and acquisitions for FY23 (2022-23).
However, the company has just raised a little over $63 million to date. In an interaction with Moneycontrol last year, Bhushan had said that the company has a very low cash burn and it will be funding acquisitions through the money it has raised and through Brightchamps’ stocks.
Brightchamps, founded in 2020 by Ravi Bhushan, has operations in over 30 countries including the US, Canada, the UAE, Saudi Arabia, Indonesia, Malaysia, Thailand, and Nigeria. Brightchamps runs a platform to teach coding, financial literacy, and robotics to kids aged 6-16.
The company, currently valued at $650 million, reported operating revenue of Rs 22.5 crore in FY22 (2021-22) and a loss of Rs 98.6 crore. It spent heavily during the year on advertising and marketing to enhance its brand appeal, Moneycontrol reported.
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