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#Unacademy, once valued at $3.44 billion in 2021, has reportedly engaged in discussions with #AllenCareerInstitute for a potential sale at approximately $800 million—a significant reduction from its peak valuation. Founded in 2015, Unacademy rapidly ascended in India’s edtech sector, attracting substantial investments. In August 2021, the company raised $440 million in a Series H funding round led by Temasek, elevating its valuation to $3.44 billion. However, the post-pandemic landscape posed challenges, leading Unacademy to pivot towards offline models to sustain growth. Allen Career Institute, established in 1988, has a longstanding reputation in offline test preparation, with over 200 centers across 53 Indian cities. A merger between Unacademy and Allen could signify a notable consolidation in the edtech sector, blending Unacademy’s digital expertise with Allen’s extensive offline presence. This development prompts several critical questions: 1) How will this potential merger reshape the edtech landscape in India, especially concerning the integration of online and offline education models? 2) What strategies should edtech companies adopt to navigate post-pandemic challenges and evolving market dynamics? 3) How can stakeholders ensure that such consolidations enhance educational accessibility and quality for learners across diverse regions? #edtech #mergersandacquisitions #valuations Follow us on #ceosgurukul #firsttimeceos https://lnkd.in/dUP9M5Gu

🚨 This High-Profile Unicorn Merger is a sign of the EdTech sector's correction and consolidation.🚨 Edtech #unicorn Unacademy is in talks to merge with K12 Techno, the company behind Orchids The International School, as per sources via Entrackr. This potential merger has been fueling around over the last four weeks and could be the first major alliance in the ed-tech space amid a two-year #funding drought. If successful, the joint entity would see both companies holding a 50% stake each. 🤝 With its co-founder & CTO Hemesh Singh stepping down, Unacademy has been in the headlines for the past few days. Was it a strategic move to take up the advisory role for the CTO, it can only be revealed as discussions proceed. However, Unacademy's interest in Orchids (K12 Techno) first came to talks three years ago, when it considered acquiring it in 2021. The #EdTech giant had also been eyeing the potential merger BYJU'S’s owned Aakash last year but later the founder Gaurav Munjal denied any debt or M&A opportunities. K12 provides full-stack education in over 900 educational institutions and Unacademy has been a common name in terms of online education & exam preparation. With these two giants merging, they can access a wider audience in both metro and mid-sized cities, and dominate the online learning arena, while being positive on the financials. This talked about alliance will be the first major consolidation in the past 2 years in the EdTech sector and could help drive the interests of investors. This merger can potentially breakthrough in their target domain, after the fall of Byju’s in recent years. Will the K12-Unacademy #merger emerge as good news amid the funding bleak for the Ed-Tech #startup space or is it just another hoax for the #onlinelearning industry?📚✨ #EduTech #OrchidsInternationalSchools #Education #TechNews #acquisition

Unacademy, once a $3.4 billion edtech unicorn, is now reportedly valued at $800 million. Is this a warning sign for the edtech industry❓ Unacademy, a leading Indian edtech firm, is in advanced discussions with Allen Career Institute for a potential merger. If finalized, the deal could value Unacademy at $800 million, a significant decline from its peak valuation of $3.4 billion. 🔴Valuation Breakdown The $800 million valuation includes cash reserves of $160 million held by Unacademy. 🔴Key Players in the Deal Discussions are being led by Bodhi Tree, an investor in Allen Career Institute. Gaurav Munjal, Unacademy's co-founder, is actively involved in the negotiations. 🔴Funding History Since its inception, Unacademy has raised a total of $880 million in funding. 🔴Edtech Sector Concerns The significant drop in valuation raises questions about the sustainability of the edtech boom. Market conditions, changing investor sentiment, and potential overvaluation during the pandemic are being scrutinized. 🔴Key Question Is the sharp drop in edtech company valuations a sign of the industry's boom coming to an end, or is it merely a market correction following the pandemic-driven surge❓ Share your thoughts below! #EdTech #ValuationTrends #StartupEcosystem #BusinessTransformation #MarketCorrection #PostPandemic #TechInnovation #InvestorInsights #IndustryReset #SustainableGrowth #MergersAndAcquisitions #EducationTechnology #FutureOfEdTech

Unacademy is merging with another company? 😲 Edtech unicorn Unacademy is in discussions to merge with K12 Techno, the operator of Orchids International Schools. This potential merger marks a significant consolidation in the edtech space, which has faced a funding drought over the past two years. Negotiations have been ongoing for the past four weeks, with both companies likely to own 50% each in the joint entity if the merger proceeds. Unacademy had previously invested in K12 Techno three years ago and attempted to acquire it in 2021, though those talks did not materialize. Peak XV is a common investor in both firms. The valuation of the combined entity remains undecided, according to sources of Entrackr While K12 Techno Services declined to comment on the speculation, Unacademy has not responded to queries. K12 Techno, a 14-year-old firm, offers comprehensive education, content, and technology services to over 900 institutions across India. Operating under the 'Orchid' brand, it manages ICSE and CBSE curriculum schools from kindergarten through class XII in cities like Bengaluru, Mumbai, and Gurugram. The company reported Rs 382 crore in revenue for FY23, with a Rs 39 crore loss, and aims to close FY24 with Rs 450 crore in revenue and an EBITDA of nearly Rs 100 crore. Recently, Venturi Partners acquired a $27 million stake in K12 Techno from Navneet Learning LLP. Unacademy, backed by Softbank, raised $440 million at a valuation of $3.44 billion in August 2021. In FY23, it increased its operating revenue by 26% to Rs 907 crore and reduced losses by nearly 40% to Rs 1,004 crore. The company claims to be nearing profitability at the group level in early FY24. Thoughts?👇

ALLEN Career Institute Overseas Institute is in advanced discussions to acquire Unacademy, one of India’s leading edtech platforms, for $800 million. This potential acquisition comes amid Unacademy’s financial struggles and a significant drop in its market value from $3.4 billion in 2021 to the reported valuation. The deal is still pending approval from the Maheshwari family, the promoters of Allen, and involves determining the share swap ratio for Unacademy shareholders. As part of the deal, Unacademy’s founding team, including CEO Gaurav Munjal, is expected to exit. Unacademy has faced financial challenges, including employee layoffs and leadership departures, making this acquisition one of the largest mergers in India’s edtech sector. Read more - https://lnkd.in/gHANHQCT To share your startup information write us on - [email protected] For Startup funding reach out us at: https://lnkd.in/gqwTnHME Join Our WhatsApp Channel To Get The Latest Updates & News: https://lnkd.in/esJEFzan #AllenCareerInstitute #Unacademy #EdtechAcquisition #IndiaEdtech #StartupMerger #BusinessNews #TechAcquisition #UnacademySale #EdtechIndustry #AllenUnacademyDeal #StartupNews

Allen Career Institute is eyeing Unacademy in a merger worth $800 million. This deal could reshape the ed-tech landscape, signaling big lessons for startups and traditional businesses alike. Here’s what’s happening? - Unacademy, once valued at $3.4 billion, has seen a steep decline to $800 million. - Allen, a leader in offline coaching, is leveraging this merger to strengthen its digital footprint. - Founders of Unacademy are expected to exit post-merger. This isn't just about two companies merging. It’s about survival, adaptation, and a changing narrative in EdTech. Lessons to Learn: 1. Boom Isn’t Forever: The pandemic fueled ed-tech's meteoric rise. Post-pandemic? Reality check! - Flat revenues - Investor caution - Demand for offline experiences 2. Adapt or Fade: Unacademy pivoted to physical centers but struggled. Allen is capitalizing on its strengths while expanding digitally. 3. Cash is King: With $160 million in reserves, Unacademy’s cash softened the blow. Lesson: Prioritize cash flow, not just valuations. The Impact Ahead - For EdTech: A signal to recalibrate priorities. - For Allen: A chance to blend offline expertise with digital innovation.- - For Learners: Possibly better hybrid learning solutions. Surviving disruption is about staying relevant and aligning with market needs. Growth isn't just upward sometimes, It's about pivoting wisely and partnering strategically. What do you think about this merger?

ALLEN Institute held talks to acquire Unacademy valuing edtech firm at $800 million in a cut-price deal Unacademy is reportedly in advanced talks with Allen #Career Institute for a potential #sale that could value the #edtech firm at $800 #million—less than a quarter of its peak #valuation of $3.4 #billion. The discussions, ongoing for months, hinge on approval from #Allen’s promoters, the Maheshwari family. While other #stakeholders are reportedly on board, the promoters have yet to agree on #deal terms. The merger would signify a significant consolidation in the #edtech sector, which has faced challenges post-COVID due to declining demand for #online learning and controversies like Byju’s bankruptcy. Unacademy, initially an online-only #platform, has pivoted to offline coaching but struggled with flat revenues and losses. In FY24, it recorded a loss of ₹631 #crore on ₹988.4 crore revenue. Meanwhile, Allen, profitable but impacted by a slowdown in the #Kota coaching ecosystem, reported FY23 revenue of ₹2,277 crore with ₹427 crore profit. The valuation negotiations include Unacademy’s $160 million cash reserves, a contentious point between the two #parties. If the deal proceeds, Unacademy’s #cofounders, including #CEO Gaurav Munjal , are expected to exit, leaving Allen’s #investor, Bodhi Tree, to steer the merged entity. Allen, with 285 #campuses and 400 test centers across 64 #cities, seeks to strengthen its digital footprint and potentially go public. Unacademy #shareholders like Temasek, General Atlantic, and Peak XV #Partners are reportedly pushing for the merger to benefit from Allen’s #profitability. Unacademy’s challenges have included #layoffs, #management churn, and struggles to sustain its #offline model. The merger, if successful, could reshape the edtech landscape by combining Unacademy’s #digital reach with Allen’s offline #dominance. #Startup #Business #Company #Jobs #Alert #Oppurtunity #Hirings

Industry reports are rife about Allen Career Institute's potential $800 million acquisition of Unacademy, India’s edtech major. Unacademy, once valued at $3.4 billion in 2021, now finds itself negotiating a significantly reduced valuation, symbolizing the turbulent journey of edtech startups in a post-pandemic world. The deal, being orchestrated with investment banks determining the intricate share swap ratio, signals a pragmatic approach to survival and growth. For Allen, a well-established traditional coaching institute, the acquisition represents a calculated expansion into digital learning. By absorbing Unacademy's technological infrastructure and massive user base, Allen can bridge the gap between conventional coaching and modern online education. The involvement of sophisticated investors like Bodhi Tree, led by media veterans Uday Shankar and James Murdoch, further underscores the strategic depth of this potential merger. The human capital transition is equally fascinating. Unacademy's founding team—Gaurav Munjal, Roman Saini, and Sumit Jain—are expected to exit, marking the end of an entrepreneurial chapter. This leadership change comes after a tumultuous period of cost-cutting, including significant workforce reductions and executive departures. The acquisition also reveals broader industry dynamics. Where startups once disrupted traditional educational institutions, we now see a reversal: established players like Allen absorbing innovative digital platforms. With Unacademy potentially being absorbed and only Vedantu and ClassPlus remaining as major independent players, the landscape is fundamentally transforming. Legacy businesses like Narayana, Allen, and Aakash are now positioning themselves as the primary architects of educational technology's future. As the negotiations continue, one lesson remains clear: the future of education in India will be shaped by those who can seamlessly blend technological innovation with deep educational insights. By Karan Karayi Article link - https://lnkd.in/dHSa9GVQ #AllenInstitute #Unacademy #Acquisition #EdTech #Investment #EducationInnovation #LearningPlatform #Funding #BusinessGrowth #TechAcquisition #TeamMarksmen #MarksmenDaily #InFocus

Popular edtech firm Unacademy has been in extended discussions with the renowned offline test preparation centre Allen Career Institute for a potential sale that could value the company at $800 million. This news comes as a sharp decline from Unacademy's peak valuation of $3.4 billion, according to a report by The Economic Times. The ongoing negotiations, which have been going on for several months, are contingent on final approval from Allen's promoters, the Maheshwari family. Maheshwari brothers' final approval would lead to merging Unacademy with Allen, as other stakeholders seem inclined to move forward with the deal. Investment banks from both sides have been involved in the discussions, and if the merger proceeds, it would mark a significant consolidation in the edtech sector. The edtech sector is going through a rough time with the post-Covid slowdown and the aftermath of Byju's bankruptcy and financial irregularities allegations. Unacademy, originally an online-only platform, has evolved to an offline model in recent years while Allen has seen a decline in business due to issues within the Kota coaching ecosystem. The valuation being discussed for Unacademy includes its cash balance of around $160 million, which has become a point of contention between the two parties. The share swap ratio is yet to be finalized, and negotiations are ongoing regarding potential cash payouts to Unacademy's founders and early investors. Post-merger, Unacademy's founding team, including Gaurav Munjal, Roman Saini, and Sumit Jain, are expected to leave the company. This follows the departure of CTO Hemesh Singh earlier this year. Unacademy has been implementing cost-cutting measures, including layoffs and the exit of top executives, to restructure the company. Incidentally, CEO Gaurav Munjal faced backlash earlier this year after announcing that employees would not receive appraisals while wearing a $400 Burberry T-shirt during the announcement. #startuppedia #startup #unacademy #startupnews #allen

Once upon a digital era, platforms like Unacademy championed online education, heralding the demise of traditional classrooms. Fast forward, and Unacademy is reportedly in talks to sell itself to Allen Career Institute, an offline coaching giant, for a mere $800 million—a fraction of its former $3.4 billion glory. It's as if the digital hare took a nap, only to be overtaken by the brick-and-mortar tortoise. And let's not forget Byju's, once the poster child of edtech, now entangled in financial woes and legal battles, with its valuation plummeting from $22 billion to virtually zero. The irony? These digital disruptors are being schooled by the very institutions they aimed to replace. What do you think about this news?