Unacademy raises $440 mn; valued at $3.44 bn

Unacademy on Monday said it has raised $440 million (about Rs 3,270.8 crore) in funding from a clutch of investors including Temasek, General Atlantic, and Softbank Vision Fund, valuing the edtech major at $3.44 billion.

The investment is expected to help Unacademy expand its offerings, deepen its presence and compete more aggressively against rivals such as Byju's in the burgeoning ed-tech space in India that has been witnessing strong uptake amid the pandemic.

The series H round was led by Temasek, with super pro-rata participation from General Atlantic, Tiger Global, and Softbank Vision Fund, a statement said.

Besides, Mirae Asset, Aroa Ventures (the family office of OYO founder Ritesh Agarwal), and Zomato co-founder and chief executive officer Deepinder Goyal also participated in the round, while some angel investors of Unacademy exited the company.

The latest fundraise takes the valuation of Unacademy Group - which includes Unacademy, Graphy, Relevel, and CodeChef - to $3.44 billion (about Rs 25,571.8 crore).

"Over the last 18 months, the valuation of the Unacademy Group has risen almost 10X, one of the fastest growth rates witnessed by a mid-stage consumer internet startup in India.

"The latest round follows one in January 2021 when Tiger Global, Dragoneer Investment Group, Steadview Capital, and General Atlantic doubled down on their earlier investments through a secondary transaction," Unacademy said.

The development indicates strong investor interest in the edtech space that has gained immensely from rapid digital adoption, especially during the pandemic.

The edtech space has seen strong growth globally, including in India.

Many offline classes went online to ensure continuity of education while adhering to social distancing norms.

Several players have raised millions of dollars in funding from investors, along with consolidation.

India's biggest edtech platform, Byju's is estimated to have raised over $1.5 billion in funding since April last year.

It has also been on an acquisition spree with the buyout of Aakash Educational Services for about a billion dollars, Singapore-headquartered Great Learning for $600 million (about Rs 4,466 crore), and US-based digital reading platform Epic for $500 million (around Rs 3,729.8 crore).

Unacademy was founded by Gaurav Munjal, Hemesh Singh, and Roman Saini in 2015.

Started as a YouTube channel by Gaurav Munjal in 2010, Unacademy currently has a network of over 50,000 registered educators and more than 62 million learners.

In September last year, Unacademy had announced raising around Rs 1,125 crore in funding that valued Unacademy at around Rs 10,900 crore. It had raised around Rs 780 crore in February last year.

Unacademy has also been aggressively expanding its operations inorganically.

It acquired Coursavy, a platform for UPSC test preparation, last year for an undisclosed amount.

The Bengaluru-based company had also bought Kreatryx, and PrepLadder (for $50 million), besides investing in Mastree, and taking over the custodianship of CodeChef.

Photograph: Courtesy Unacademy