Good morning, it's Thursday and everyone's favorite conglomerate is back in the news. My newest Substack post will also be up in a couple of hours (on Venture in India) so stay tuned for that. In other news, an EdTech company is in advanced stages of raising more money.
➡️ Chinese internet giant ByteDance is in early discussions with Reliance over a potential investment in TikTok's India business in a move to save & bring the popular short-video back to consumers in the country.
➡️ The companies began talks late last month and have not reached a deal yet. TikTok has over 200M users and is being valued at $3B. The move might be beneficial for both entities:
➡️ While Jio is the most popular telecom network in the country, it has not fared well building consumer apps in the country- (other than Saavn which they also acquired). TikTok might fit nicely in their portfolio of apps.
➡️ On the other hand, it seems like companies are investing in Reliance in an effort to smooth over regulatory hurdles and Reliance investing in TikTok will certainly help the company overturn the ban in the country.
➡️ Tons of Indian copycat short-video apps have entered the market in the last 2 months, but a Reliance & ByteDance partnership could be a very scary proposition for them.
2. https://bit.ly/33YFTLd: ClassPlus is in talks to raise $15M
➡️ Can we get through one week without talking about Jio or EdTech? I guess not. ClassPlus is now in advanced talks to raise $12-15M from Falcon Edge, but the round could exceed $18-20M as two other investors are in conversations.
➡️ The reason that I'm so fascinated by this news is that the company has now raised (or announced) three fundraises in the last 6 months- the company announced a $2.5 Pre-Series A in Feb by Sequoia Surge & Blume, a $9M Series A led by RTP Global in May and now a >$12M (Series B?) led by Falcon Edge that would value the company upwards of $65M.
➡️ I've previously covered the company multiple times- I've been a huge fan of the model since I came across the company in January. The company enables coaching institutes & their teachers to streamline their content distribution, payments, communication, and online assessments.
➡️ I like to use the Shopify analogy to describe them- Shopify enables businesses to sell online and helps them manage all the facets of their operations, and ClassPlus does the same for coaching institutes.
➡️ The company has over 1M students on the platform with over 10,000 tutors in 100 cities across the country and I think the rest of 2020 will be a hyper-growth story for them.
Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/ankitkr0/status/1293763560556752896
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