B2B EdTech firm Classplus has made its maiden investment by acquiring a minority stake in the government exam preparation platform Testbook via a secondary transaction.
With the deal, Classplus has bought the shares of the Mumbai-based company’s current investors Matrix Partners and Pivot Ventures.
According to the company regulatory filing with the RoC, the board at Classplus has passed a special resolution to allot 1,695 Series E preference shares to Matrix Partners and Pivot Ventures at an issue price of Rs 400,013 per share, aggregating up to Rs 67.80 crore against 7,867 shares of Testbook held by them. Following this transaction, Matrix Partners will own a 1.65% stake in Classplus, according to a report by Entrackr.
Testbook is one of the leading exam preparation platforms for competitive exams like Banking, SSC, Railways, Civil Services, Engineering, and various others. It provides students with a one-stop destination for complete exam preparation through live classes, mock tests, and quizzes. The Mumbai-headquartered company claims to have a community of over 3.1 crore students on its platform.
According to Entrackr, the investment is strategic in nature and Classplus may fully incorporate Testbook into the company in the future.
“Classplus will evaluate to acquire more stakes in Testbook if the company demonstrates desired performance. It’s also likely to put some primary capital in Testbook in the coming months,” a source requesting anonymity reportedly told Entrackr.
Classplus is a mobile-first SaaS (Software-as-a-Service) platform that enables educators, private coaching institutes, and content creators to build their online presence, digitize their offline tuition centres, and sell their courses online.