Baiju’s eyes are on Chag or 2U as it weighs US acquisitions

New Delhi: Online Education startup Baiju is in talks to get a US target and is likely to bid for one of them Chag Inc. Or 2U Inc., according to people familiar with the matter.
The Bangalore-based company has negotiated with both Santa Clara, California-based Chag and Lenham, Maryland-based 2U, and the total value of the deal could be around $ 2 billion, people said on condition of anonymity. The sensitive nature of negotiations. Chag had a market value of $ 2.3 billion as of the end of Friday, while 2U had a market value of $ 756 million and more than $ 1 billion in debt and other liabilities.
Baiju and its bankers are both evaluating the company’s finances and aiming to make an offer next week, a source said. They have yet to agree on any final price and it is possible that no deal will finally materialize, people said.
Baiju declined to comment, while Chag and 2U did not respond to requests for comment.
Chegg closed up 2.9% on Monday after rising 12%, while 2U ended up 6.8% after rising 24%.
Baiju, one of the world’s most valuable startups with the support of Tiger Global Management and Mark Zuckerberg’s Chen Zuckerberg Initiative, wants to capitalize on the global market path and build its business through acquisitions, said one person. Both Chegg and 2U have seen their shares fall more than 75% since the market closed on Friday-July.

According to market researcher CB Insights, Indian education pioneer is the most valuable startup in the country, valued at $ 22 billion. Among its supporters are Silver Lake Management, Nespers Ltd. And Mary Mixers Bond Capital.
Byju’s, which is the parent company and is formally known as Think & Learn Pvt, has acquired Morgan Stanley and JPMorgan Chase & Co. And Goldman Sachs Group Inc. Has already prepared conditional debt commitments of over $ 1 billion to finance the acquisition from banks including. Representatives of People’s Banks declined to comment.
Bloomberg News reported last week that the company is in talks with lenders to raise more than $ 1 billion in acquisition financing.
Byju’s, founded by former teacher Baiju Rabindran in 2015, is already leading the integration wave in online education. Last year, it bought US reading platform Epic for $ 500 million, Singaporean service Great Learning for $ 600 million, US coding site Tinker for $ 200 million and Austrian math operator Geogebra for about $ 100 million.
“We are taking advantage of the opportunity to expand Adtech A company for the world, “Ravindra told Bloomberg News last year.
The deal for Chegg or 2U will further turbocharge Baiju’s growth by reaching millions of students in the lucrative higher education segment.
Founded in 2005 by a group of students at Iowa State University, Chag was introduced as a low-cost textbook rental service for college students. He then raised $ 187 million in an initial public offering in 2013 and turned to online coursework and tutoring.
Chag A Piloton Interactive Inc. From Zoom Video Communications Inc. Till was one of the epidemic-loved ones crop that grew in 2020 after investors staked on fundamental changes in consumer behavior. But the edtech firm, Coursera Inc. Competing with, after enrollment fell in 2021 and the US economic growth cracked, which prompted Chag to reduce its revenue forecast and warn of an uncertain growth outlook.
2U, founded in 2008, is the parent of the online learning platform edX. The company provides tools for designing and providing e-learning courses to universities around the world.
Baiju has also made its way to the public markets. Adtech startups are in talks with multiple special-purpose acquisition companies, or SPACs, about a potential U.S. listing that is still under consideration, people said.


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