Global private equity firm Blackstone is exploring the sale of its majority stake in Simplilearn, a digital learning platform, more than three years after acquiring over 60% of the company. Sources familiar with the situation have indicated that Blackstone’s investment bankers are reaching out to potential buyers. The firm invested approximately $250 million in the Bengaluru-based startup in 2021.
As Blackstone is currently in the process of raising a $10 billion Asian fund, securing a favorable valuation for Simplilearn is essential. However, if market valuations do not align, the firm may delay the sale. A spokesperson for Simplilearn stated that the investor does not intend to exit or has appointed bankers for the sale.
Founded in 2010, Simplilearn provides digital upskilling certifications globally, offering over 1,500 live online classes each month to more than eight million learners. The company has raised nearly $300 million in equity funding and was last valued at around $600 million in 2022 after securing $45 million from GSV Ventures, along with participation from Clal Insurance and DisruptAD.
In response to a challenging funding environment, Simplilearn shifted its focus to profitability at the beginning of FY24, closing certain verticals and reducing its EBITDA losses by 75%. After prioritizing high growth, which impacted profitability over the last three financial years, the company achieved profitability in the last two quarters of 2024. The emphasis now is on returning to profitability rather than solely pursuing growth.
