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Unacademy set to raise $100 Mn at $3 Bn valuation

Saransh Pandey

Intern
  • April 21, 2021
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    Unacademy had raised around $88 million in primary capital led by Tiger Global and Dragoneer at a valuation of $2 billion in November.

Euphoria around edtech isn’t going to subside anytime soon. After Byju’s recent $1 billion round, Unacademy is all set to score a new round at a higher valuation. The company is in talks to raise fresh financing with about a $1 billion premium in its valuation, according to two sources familiar with the matter.  

SoftBank and D1 Capital Partners are in an advanced stage to invest $100 million in Unacademy at a valuation of $3 billion. Existing investor SoftBank and along with new investor D1 Capital Partners would co-lead the round. 

Unacademy had raised around $88 million in primary capital led by Tiger Global and Dragoneer at a valuation of $2 billion in November. D1 Capital Partners is a New York-based venture capital firm. In December, it had backed foodtech major Zomato and recently co-led a $400 million secondary round in Dream11 with TVC and Falcon Edge.  

The second-largest company in the edtech segment after Byju’s, Unacademy claims to have over 500,000 active paid subscribers on the platform as of March 13, 2021. The company has raised around $350 million in primary financing in the past 15 months.  

During the period, it has made over half a dozen acquisitions which include PrepLadder, Mastree, Kreatryx, CodeChef, Coursavy, NeoStencil and most recently management-focused coaching institute Handa Ka Funda. 

Unacademy had concluded a secondary transaction at a similar valuation in which it raised its primary round in November. Tiger, Dragoneer, Steadview and General Atlantic had acquired $50 million worth of shares from existing investors at the same valuation ~ $2 billion. 

On the back of increased usage of its core business – test preparation – in the past year, the company is claiming to turn operationally profitable by June 2021 in its test-prep vertical. Meanwhile, in FY20, Unacademy had posted operating revenue of Rs 65 crore with a loss of Rs 300 crore. 

Of late, SoftBank and Tiger Global are on an investment spree in India. While Tiger has already invested in over half a dozen startups in 2021, SoftBank has led a $300 million round in Meesho and is in talks to pump big rounds into Swiggy, Ola Electric, Zeta, and Whatfix. 

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