Unacademy is in discussions to generate $55 million in a funding round
Unacademy learning app started a subscription-based model for students
Unacademy will be valued at around $250 million
Educational tech startup ‘Unacademy’ is in discussions to generate $55 million (INR 384 crore) in a funding round led by an alternative asset management firm, SteadView. The Hong Kong-based hedge fund is backed by major companies Flipkart and Ola. After this deal, the education platform will be valued at around $250 million (INR 1746 crore).
The Bangalore-based startup current investor list includes Sequoia Capital India and SAIF Partners are going to be the part of the funding round. According to a few sources, some new investors could possibly participate in this round as well.
After numerous experiments to monetise its platform, Unacademy learning app has now shifted to a subscription-based model for students and learners desiring to prepare for crucial exams such as UPSC, IIT-JEE, and CAT. Within the first four months, the company claims to have generated 30,000 paid subscribers, who have selected monthly and yearly subscription plans.
A person who is aware of the insights informed that the company is gaining monthly revenue of INR +2 crore. This informer said, “SteadView’s deal is on the merge and they would head the funding round. After Sequoia’s investment in the company, Unacademy app might increase its target on revenue. It looks like they have to discover a path now.”
If the deal between Steadview and Unacademy is finally signed, the startup would have raised more than $90 million (INR 628 crore) in funds since its launch. Kalyan, Krishnamurthy, CEO of Flipkart, is also an investor in the company.
Based on a recent report by Ernst & Young India, Education-based tech firms will continue to draw more investors going further. In the past two years, this field has generated almost $1.1 billion (INR 6983 crore) of capital running into companies such as Unacademy, BYJU, Cuemath, Toppr, Vedantu and others.
The field is enlarging quickly and is estimated to hit the $2 billion mark in the next three years. “Given the on-going learning process that is required to skill/upskill, this surely creates outstanding potential across all sections such as primary+secondary higher education, test preparation, re-skilling courses, and activity-based part-time learning programs,” the report added.
“The subscription has been well received by the customers and it has around 150 million views monthly by students across the country on its own portal and YouTube. The conversation rate of students registering to the subscription plans is beneficial by far,” another informer added.
What is Unacademy?
Unacademy is a Bangalore-based based education giant. The educational technology company was in started in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh. Unacademy was initially started as a Youtube channel by Gaurav Munjal in 2010. By December 2015, Singh and Saini tied up with Mujal and officially started the company, and registered it under Sorting Hat Technology Pvt Ltd. In 2017, Billionaire entrepreneur Bhavin Turakhia joined the committee.
Unacademy provides a high quality of educational videos, tutorials, and data for free for all. With the use of technology, Unacademy has revolutionised the course of education and learning with the help of technology and significant preceptors, creating a community of self-learners.
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