The deal will enable it to strengthen its data science, Artificial Intelligence and Machine Learning capabilities, a senior company executive told ET.
The acquisition, its third in the last 12 months, comes two months after it raised $55 million in Series B funding from investors led by Lightrock India.
Last year, it acquired Coding Minutes and Coding Elements.
Launched in April 2019 by Anshuman Singh and Abhimanyu Saxena, Scaler’s parent entity InterviewBit commands a post-money valuation of $710 million, ET reported earlier.
“This acquisition will help us grow faster in the AI and ML space,” Saxena told ET. “We have a long runway and the capital raised will look to grow business further through organic and inorganic routes.”
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AppliedRoots was bootstrapped by Srikanth Varma Chekuri, Murali Krishna Varri, Naveen Reddy Bade, Brahma Reddy, Srinivas Reddy and Satish Atcha.
It offers an online diploma course in AI and ML.
The platform also provides tech professionals with GATE CS preparation and applied coding tracks. Its team has served more than 40,000 learners in the last four years, the company said. The entire team along with its founders have joined Scaler.
“Our immediate goal will be to support the efforts and projects being done in the Data Science & ML team. We will also incorporate a separate Data Analyst Sub track within the Data Science program,” Chekuri, co-founder of AppliedRoots, said.
Scaler has till date raised around $76 million. It will look to acquire more companies this year. “We are open to small acquisitions where we are looking to bulk up on talent, distribution or for access to geography,” Saxena said.
Scaler is currently clocking an annualised revenue run rate (ARR) of $60 million.
“We expect to reach an ARR of $150 million by end of FY23,” Saxena added.
The company is looking to expand its presence in software development programmes for beginners and data analytics/engineering.
“Our business is cash flow positive and profitable and hence we are not worried about the runway of the company as we have cash in hand. We are not immediately looking at raising a new round of capital,” Saxena said.
