Edtech Company Scalar acquires AppliedRoots for $50 million
The acquisition is the company's third in the last 12 months, and it comes only two months after it raised $55 million in Series B capital from Lightrock India-led investors.
It bought Coding Minutes and Coding Elements last year.
Scaler's parent company, InterviewBit, was founded in April 2019 by Anshuman Singh and Abhimanyu Saxena and has a post-money valuation of $710 million.
“This acquisition will help us grow faster in the AI and ML space,” Saxena told. “We have a long runway and the capital raised will look to grow business further through organic and inorganic routes.”
Srikanth Varma Chekuri, Murali Krishna Varri, Naveen Reddy Bade, Brahma Reddy, Srinivas Reddy, and Satish Atcha founded AppliedRoots.
It offers an online AI and machine learning diploma programme.
GATE CS preparation and applied coding tracks are also available on the platform for tech professionals. In the last four years, its crew has helped more than 40,000 students, according to the company. Scaler has taken on the entire crew, including the founders.
“Our immediate goal will be to support the efforts and projects being done in the Data Science & ML team. We will also incorporate a separate Data Analyst Sub track within the Data Science program,” Chekuri, co-founder of AppliedRoots, said.
Scaler has raised around $76 million to date. This year, it plans to buy more businesses. Scaler is currently generating $60 million in annualised revenue run rate (ARR).
"By the end of FY23, we hope to have an ARR of $150 million," Saxena added.
The organisation wants to grow its position in novice software development programmes and data analytics/engineering.
“Our business is cash flow positive and profitable and hence we are not worried about the runway of the company as we have cash in hand. We are not immediately looking at raising a new round of capital,” Saxena added.