Unacademy, under the leadership of SoftBank, raised funds of 150 million US dollars.
With an estimate of 1.45 billion USD, Unacademy is now in second place after BYJU’s estimate of 10 billion USD.
Unacademy acquires smaller Edtech start-ups that offer niche products. So far it has acquired 5 organizations.
The Bengaluru-based Edtech startup Unacademy raised $150 million in funding under the leadership of the Japanese multinational conglomerate SoftBank. With its latest fundraising, Unacademy joined a unicorn club and received a valuation of approximately $1.45 billion. The financing round also included investments from existing shareholders General Atlantic, Facebook, Blume Ventures, Sequoia Capital and Nexus Venture Partners.
On September 2, co-founder and CEO Gaurav Munjal posted the financing information on Twitter.
Unacademy Group raised $150 million in a round led by Softbank, and we were valued at $1.45 billion after the financing. It’s great to have them on board as a partner on our journey.
Our existing investors General Atlantic, Sequoia India, Nexus, Facebook and Blume also participated in the round – Gaurav Munjal (@gauravmunjal) September 2, 2020
About five months ago, in February 2020, Unacademy raised $110 million in the Series E financing round, which is equivalent to a valuation of $510 million. According to Cruchbase information, Unacademy is funded by 33 investors and has raised a total of $348.5 million in over eight financing rounds.
With a valuation of USD 1.45 billion, Unacademy now ranks second behind BYJU’S, another Indian player in educational technology with a valuation of USD 10 billion. Unacadmey mentioned that it will use the funds raised to launch new products and build a world-class team and organization.
Covid 19 pandemic: a blessing for the Edtech sector
At the peak of the Covid 19 summit in mid-April, coronavirus affected 90% of the total number of students enrolled and also led to the closure of schools in 190 countries. Various stakeholders, including teachers, students and parents, understood and recognized the importance of new learning methods. Sooner rather than later, the pandemic acted as a catalyst for the adaptation of educational technology.
Chance in the pandemic for Unakademie
It remains interesting to note that during the difficult times of the COVID 19 pandemic, Unacademy had a three times higher rating and also a four times higher number of subscribers. The Unacademy platform consists of more than 18,000 educators and a registered subscriber base of 30 million, as well as a paying subscriber base of more than 350,000. Unacademy focuses on the K12 segment and also offers lessons for developing skills and preparing for competitive exams.
Unacadmy has taken advantage of inorganic growth opportunities by acquiring smaller Edtech startups with niche offerings. To date, it has acquired 5 organizations.
Source: Information from Unacadmy about the Crunchbase database.