Simplilearn acquires US-based Fullstack Academy amid edtech industry’s growing struggles

Even as the larger edtech industry continues to bleed as the pandemic-led digital boom slows down, online skilling and training platform Simplilearn has acquired US-based bootcamp education company, Fullstack Academy, in an all-cash transaction.

The deal marks the company’s second acquisition after it snapped up Silicon Valley-based digital marketing training company Market Motive in 2015.

Following the transaction, all Fullstack Academy employees will remain in their roles as part of the combined organization, bringing Simplilearn’s total employee count to over 2,500. Fullstack Academy will continue to operate as an independent business unit within Simplilearn.

Simplilearn said the complimentary acquisition will help it to become the largest digital skilling company globally. The acquisition will enhance its scale and presence in the bootcamp space and drive revenue growth to $200mn by FY24, of which 70 per cent is likely to come from global markets, the company said in a statement.

The acquisition comes just days after the company raised $45 million from a consortium led by GSV Ventures.

As per Simplilearn’s website, online bootcamps are accelerated, intensive study programs that enable students to learn the in-demand tech skills sought by recruiters.

Fullstack Academy offers bootcamp programs in Web Development, Cybersecurity, Product Management, DevOps, Data Analytics, and other disciplines. The company works with twenty university and industry partners including Virginia Tech, Caltech CTME, and Louisiana State University. Its graduates have been hired by global firms including Google, Facebook, and Amazon.

Fullstack’s existing partnerships across 15 states is expected to provide Simplilearn access to new university partnerships in the region.

“Bootcamps have been an extremely popular concept in the edtech industry, and there is no denying that learners are looking for the holistic learning experience that bootcamps offer. Through Fullstack Academy’s wide-spread footprint in the US and its strong partnerships with top universities, we are confident that this collaboration will enable us to accelerate our global expansion plans,” said Krishna Kumar, founder and CEO of Simplilearn.

With over 60 per cent growth in the past year, Simplilearn claims to be world's leading online bootcamp for digital economy skills training. Founded in 2010 and based in San Francisco and Bangalore, its programs are designed and delivered in partnership with universities, corporations, and industry bodies via live online classes featuring industry practitioners, trainers, and leaders.

The acquisition comes at a time when venture capital funding into the larger start-up ecosystem has dried up due to a combination of macroeconomic factors while edtechs are affected by the slowing interest in remote learning. In the first three months of the lockdown in 2020, education apps witnessed a 30 per cent increase in time spent, per a report by BARC India and Nielsen. Two years on, this has translated into “screen fatigue”. A survey by the Ministry of Education reveals that 80 per cent of students found remote learning “burdensome” and unenjoyable.

The edtech sector has been worst hit by the funding winter. It has also notched up the notorious distinction of firing the most employees in 2022. Cumulatively, 11 of India’s top edtech start-ups including BYJU’S, Unacademy, and Vedantu have laid off nearly 7,000 employees (until the first week of November), per Tracxn. These include layoffs due to changing business models, shifting focus from non-core verticals, and complete shutdowns. Start-ups like Lido Learning, Udayy, Crejo.Fun, SuperLearn, etc., have wound up operations due to capital crunch and changing consumer preferences.

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