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Allen Institute held talks to acquire Unacademy valuing edtech firm at $800 million in a cut-price deal: sources

Economic TimesEconomic Times · 1y ago
Allen Institute held talks to acquire Unacademy valuing edtech firm at $800 million in a cut-price deal: sources
Medial

Indian edtech platform Unacademy is in talks with offline test preparation center Allen Career Institute for a potential sale that could value Unacademy at $800 million. The discussions, which have been ongoing for several months, hinge on approval from Allen's promoters, the Maheshwari family. This potential merger would be a significant consolidation move in the edtech sector, which has been hit by a slowdown in demand for online learning, as well as the aftermath of Byju's bankruptcy and allegations of financial irregularities. If the deal goes through, Unacademy's founders are expected to exit the company.

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Abha Maheshwari resigns as Allen Digital CEO after two years

EntrackrEntrackr · 5m ago
Abha Maheshwari resigns as Allen Digital CEO after two years
Medial

Abha Maheshwari, a former Meta executive who took charge of Allen’s digital business in 2022, has stepped down as CEO after two years in the role. She announced that she will be taking a short break before moving on to her next opportunity. "When I first joined, we were a small team of 15 to 20 working out of a WeWork, scrappy, ambitious, and committed to building something meaningful. Two years later, I leave behind a buzzing office filled with passionate people, bold ideas, and the same deep sense of purpose, now backed by a much larger and stronger team,” she wrote in a social media post announcing her exit. In April 2022, Allen Career Institute set up a wholly owned subsidiary, Allen Digital, with the aim of taking on India’s multi-billion-dollar edtech giants. The move came barely a month after Allen raised $600 million (about Rs 4,500 crore) from Bodhi Tree Systems, the investment vehicle of James Murdoch and former Disney Asia-Pacific chairman Uday Shankar. During her tenure, Allen Digital acquired AI-powered doubt-solving platform Doubtnut in a slump sale reportedly valued around $10 million. In December 2024, Allen was also reportedly in early-stage talks to acquire Unacademy at a discounted valuation of around $800 million. However, Unacademy co-founder and CEO Gaurav Munjal publicly denied the claim. "Together, we built a digital-first EdTech business anchored in learning outcomes. We launched transformative technology, scaled rapidly, and most importantly, made a real difference in the lives of students. From AI-powered learning to seamless offline–online integration, every step was guided by our vision to make education more accessible, deliver real learning outcomes, and truly empower students," Maheshwari wrote. For FY24, the company’s revenue grew 42% year-on-year to Rs 3,244.7 crore, driven by strong offline enrolments and an expanding digital footprint. However, its profit fell 44% to Rs 136 crore during the same period.

PhysicsWallah in talks to acquire Sarrthi IAS

EntrackrEntrackr · 9m ago
PhysicsWallah in talks to acquire Sarrthi IAS
Medial

Edtech unicorn PhysicsWallah is in final-stage talks to acquire Sarrthi IAS, an online platform that provides mentorship-focused courses for UPSC preparation. Sources indicate that the deal is likely in the range of Rs 120–130 crore, with Sarrthi having closed FY25 with Rs 35 crore in revenue and around Rs 20 crore in profits. The discussions follow PhysicsWallah's negotiations to acquire Drishti IAS for Rs 2,500–3,000 crore and align with the company's strategy to expand in the UPSC preparatory space. Sarrthi has been exploring consolidation with a larger player and has engaged in talks with other edtech firms. While sources suggest advanced discussions, Sarrthi's founder, Varun Jain, denies the ongoing talks. PhysicsWallah is reportedly preparing for an IPO, aiming to raise $500 million at a $5 billion valuation, and has seen substantial growth, reporting Rs 1,940.4 crore revenue in FY24.

upGrad–Unacademy deal called off over valuation differences

EntrackrEntrackr · 9d ago
upGrad–Unacademy deal called off over valuation differences
Medial

upGrad–Unacademy deal called off over valuation differences Confirming the development, Ronnie Screwvala, co-founder of upGrad, told Entrackr, “Yes, we are not proceeding due to valuation differences." The much-speculated acquisition talks between online higher education platform upGrad and test-prep major Unacademy have been called off after both parties failed to reach a consensus on valuation, according to sources aware of the matter. While we cannot comment on specific numbers, it is fair to say that we were unable to arrive at a mutually agreeable valuation. Entrackr had earlier reported that upGrad and Unacademy were engaged in merger and acquisition discussions as consolidation accelerates across India’s edtech sector. The talks drew attention at a time when Unacademy was navigating internal restructuring, implementing cost-rationalisation measures, and sharpening its focus on its core test-preparation business. In recent months, Gaurav Munjal, co-founder and CEO of Unacademy, had publicly acknowledged that the company was exploring various strategic options, including fundraising and potential M&A transactions, while maintaining that no decision had been finalised. Munjal had also clarified the company’s position on employee stock option (ESOP) exercises and valuation expectations, amid questions around internal liquidity and employee compensation. Separately, Unacademy has put on hold proposed amendments to its 2018 ESOS scheme following strong pushback from former employees. The objections were primarily linked to the tax implications and liquidity concerns associated with exercising stock options at a significantly lower valuation compared to earlier rounds. Unacademy has yet to comment officially on the stalled merger talks. Founded in 2015, Unacademy has raised over $800 million from investors including SoftBank, General Atlantic, and Tiger Global, and was last valued at around $3.4 billion during the peak of the edtech funding cycle. However, like several peers in the sector, the company has faced pressure to recalibrate growth expectations amid a prolonged funding slowdown. upGrad, which operates across higher education, upskilling, and overseas education segments, has previously pursued selective acquisitions to strengthen its portfolio.

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