Tutoring marketplace WyzAnt has purchased New York-based rival Tutorspree and its remaining assets for an undisclosed sum. Tutorspree has closed down since September 2013, according to TechCrunch.
Launched out of Y Combinator in 2011, Tutorspree had recruited more than 7,000 tutors and 10 employees by early 2013. However, six months after a $1.8-million funding round, the "Airbnb for tutoring" closed down, said the report.
Since Tutorspree is already non-operational, the acquisition price was likely very low. On the positive note, the deal gives its tutors and students a place to go, plus a chance for its investors to recover a little bit of their money. And since all of the firm's employees have moved on to other companies, the deal is strictly an asset acquisition, the report explained.
The deal comes just a month after WyzAnt picked up $21.5 million in a funding round. For WyzAnt, the transaction gives it access to the clients, technology, and domain of Tutorspree for a very low price. The latter's website has been running for a while without active management, the report added.
While Tutorspree failed in the marketplace sector, WyzAnt has been flourishing for eight years. At present, WyzAnt works with more than 500,000 offline tutors and a million students. The company has also posted gross sales to date amounting to more than $100 million, wrote TechCrunch.
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