Paytm, the mobile payments and commerce platform, has acqui-hired EduKart, an online education marketplace. As a part of this deal, Ishan Gupta, founder of EduKart, has joined Paytm as the Vice President of Business. He’ll be responsible for building a vibrant seller services eco-systems for the 130,000 sellers on the Paytm marketplace.
Along with the company’s founder, the 50-member team at EduKart has also joined Paytm. EduKart has more than 10,000 paid students on its platform and partnerships with 120+ course providers. It is offering 2500+ courses, ranging from school and college students to working professionals.
Some reports suggests that the deal has no cash consideration as the deal is more to acquire the skills and expertise of the employees. The deal includes an employment contract.
Kiran Vasireddy, Sr. Vice President, Paytm said,
The team at EduKart has built a unique education services platform in a short time and has an in-depth understanding of customer needs. We welcome the EduKart team to be a part of our journey. This move will further strengthen our efforts to build services faster and drive growth in this sector.
Speaking on the development, Ishan Gupta, Founder EduKart said,
I am super excited to be back at Paytm to build a large bouquet of service offerings for the merchants on Paytm. The excitement is at its peak, and I am happy that the strong team of EduKart is now open to new opportunities as a part of that journey.
Notably, Vijay Shekhar Sharma, founder and CEO of Paytm, is also one of the first investor of EduKart and is also on the Board of the company. Prior to working on his own startup, Ishan Gupta had earlier worked at Paytm from 2009-2011.
While the team has been absorbed into Paytm, investors are currently looking for a buyer for Edukart’s business. As per the person aware of the matter, finding a buyer is difficult as very few edutech start-ups have managed to scale up.
Founded in 2011 by Ishan Gupta and Mayank Gupta, the company had raised $2 million in three rounds from Kima Ventures, AKM Systems, YouWeCan Ventures and several other investors. It was a marketplace that aggregated K 12, degree, diploma and certificate courses, besides coaching for entrance examinations. However, Mayank Gupta quit the firm in December 2014 and joined online electronics marketplace Zopper.