Blackstone-backed Simplilearn has acquired US-based Fullstack Academy, while Flipkart-owned PhonePe is understood to be acquiring ZestMoney.
Simplilearn acquires US edtech firm Fullstack
Simplilearn, a higher edtech platform backed by private equity firm Blackstone, has acquired US-based bootcamp education company Fullstack Academy.
The acquisition will help the Indian startup strengthen its presence in North America at a time when competition in the higher learning and upskilling space has intensified in the country.
Simplilearn has acquired Fullstack in an all-cash transaction from the latter’s US-based publicly traded parent entity, Zovio Inc.
Earlier this month, Simplilearn made headlines when it raised $45 million in a new funding round led by GSV Ventures, bucking the funding crunch that has plagued the Indian edtech industry of late. Last year, the startup had raised funding from Blackstone that led to the exit of its early investors such as Kalaari Capital and Mayfield.
PhonePe to buy BNPL startup ZestMoney
Flipkart-owned digital payments platform PhonePe is close to acquiring buy-now-pay-later (BNPL) fintech startup ZestMoney, per media reports.
While the exact deal size could not be ascertained, it could be in the range of $200-300 million.
The proposed acquisition will give PhonePe instant access to a readymade consumer credit base.
While PhonePe recently received a fresh capital infusion of about $90 million (Rs 742 crore) from its Singapore-based parent, ZestMoney last secured about raised $50 million from Australian BNPL fintech Zip Co in September 2021.
It’s worthwhile to note that talks of the proposed transaction have surfaced at a time when BNPL companies in India have been facing a lot of uncertainty with the Reserve Bank of India (RBI) releasing guidelines around digital lending.
Other startups operating in the sector include names such as LazyPay, Uni Cards, and Slice.