Pearson buys controlling stake in TutorVista for Rs577 crore
19 Jan 2011
Pearson Plc, the world's largest book publisher has acquired a controlling stake in Bangalore-based online education firm TutorVista for Rs577 crore ($127 million) to expand into the growing education business in India.
The London-based publisher of the Financial Times and Penguin Books has upped its stake in TutorVista to a controlling 76 per cent after acquiring a minority stake in June last year, taking its total equity investment in the company to approximately Rs632 crore ($139 million).
Founded in 2005 by Krishnan Ganesh, TutorVista supplies digital content and technology platforms to private and government schools in India and provides online tutoring services to approximately 10,000 students per month.
It uses Voice-Over-Internet-Protocol and online whiteboards to connect instructors in India with school and college students.
TutorVista also operates a network of 60 centres across southern India delivering English language coaching courses as well as trains teachers and school administration services to schools to around 5,000 students in India.
TutorVista had earlier raised a total of $38 million with an initial capital from Sequoia Capital, while Lightspeed Venture, Silicon Valley Bank and MEMG contributed $18 million in the second round of funding and later it received $2.5 million from the Manipal Education Group.
