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Allen Career Institute Eyes Unacademy Acquisition in $800 Million Deal!

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Allen Career Institute, a leading coaching institute, is reportedly in advanced talks to acquire Unacademy, a prominent Indian edtech platform. The deal, valued at $800 million, shows a significant decline from Unacademy’s peak valuation of $3.4 billion in 2021. This potential acquisition highlights the shifting dynamics within the edtech sector as companies adapt to market challenges and seek strategic partnerships. Let’s take a look into the details and cornerstones of the deal.

Key Details of the Proposed Deal

Valuation Drop

The proposed valuation of $800 million includes Unacademy’s cash reserves of approximately $160 million. This significant drop reflects the broader struggles faced by edtech companies in recent years, particularly following the post-pandemic market correction.

Share Exchange Ratio

Investment banks are currently working to determine the share exchange ratio, which will dictate the number of Allen shares offered to Unacademy shareholders. This ratio will be crucial in ensuring a fair valuation for both parties involved in the merger.

Potential Cash Payouts

The deal may involve cash payouts to Unacademy’s founders and early investors, providing them with liquidity as they transition out of their roles from the company.

Management Changes

Unacademy’s founding team, including Gaurav Munjal, Roman Saini, and Sumit Jain, are expected to leave the company post-acquisition. Their departure indicates a critical shift in leadership and vision for Unacademy as it integrates with Allen Career Institute.

Unacademy’s Recent Struggles

Unacademy has been grappling with several challenges that have led to its declining valuation, let us have a look into what brought this merger into talks.

Cost-Cutting Measures

The company has implemented cost-cutting measures, including layoffs and executive departures. In July 2023, Unacademy laid off over 600 employees as part of its efforts to streamline operations.

Public Backlash

CEO Gaurav Munjal faced criticism for announcing the suspension of performance reviews during a virtual town hall while wearing a luxury brand T-shirt. This incident highlighted perceived insensitivity amid layoffs and financial struggles, further impacting morale within the company.

Financial Pressures

Despite showing above-average performance in 2024, Unacademy fell short of its growth targets, necessitating difficult decisions regarding employee appraisals and overall workforce management.

Impact of the Acquisition

If the deal materializes, it will be one of the largest consolidations in the Indian edtech sector. The acquisition could reshape the competitive landscape and potentially lead to further industry consolidation as companies seek to strengthen their offerings through strategic mergers.

Future Opportunities for Allen Career Institute

Allen Career Institute is not only looking to acquire Unacademy but is also expanding its own digital footprint. The institute recently launched its digital arm, Allen Digital Pvt. Ltd, aiming to reach more students who cannot relocate for physical classes. This initiative positions Allen as a key player in both offline and online education sectors.

Future Outlook

The outcome of the negotiations between Allen and Unacademy will be closely watched by industry observers. The deal’s implications for the Indian edtech sector and its impact on the future of online education in the country remain to be seen.

Hiring Initiatives Amid Layoffs

Interestingly, while both companies are undergoing significant changes, they are also exploring opportunities for growth. Byju’s, another major player in the edtech space, is reportedly looking to hire strategically after laying off employees to clear debts (DBTs). This approach reflects an effort to stabilize finances while preparing for future opportunities.

Conclusion

The potential acquisition of Unacademy by Allen Career Institute underscores the evolving landscape of the Indian edtech sector amid economic pressures and shifting market dynamics. As companies like Allen seek to expand their reach through strategic acquisitions, it remains crucial for them to navigate these transitions carefully while addressing workforce concerns and maintaining educational quality. The outcome of this acquisition could set important precedents for future consolidations within the industry, shaping how educational services are delivered in India moving forward.

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Blissclub Raises INR 33 Crore in Fresh Funding Months After Layoffs

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Blissclub, the women-centric D2C apparel brand, has raised INR 33 crore in a Pre-Series B funding round led by Elevation Capital, with Eight Roads Ventures also participating. This funding comes just three months after the company laid off 18% of its workforce-about 21 employees from creative, sales, marketing, growth, and product teams-due to high cash burn and challenges in securing new capital.

The latest investment was made through the allotment of 16,076 compulsory convertible preference shares (CCPS) at a premium of INR 20,428 each. Elevation Capital invested INR 19 crore, securing a 24.5% stake, while Eight Roads Ventures contributed INR 14 crore, raising its stake to 15.79%. The capital will be used for working capital, capital expenditure, and general corporate purposes.

Founded in 2020 by Minu Margeret, Blissclub started as an online activewear brand for women and has since diversified its product range and established offline stores. Despite recent restructuring, the company’s revenue grew 27% to INR 86.9 crore in FY24 from INR 68.3 crore in FY23, though net losses also increased to INR 43.9 crore.

Blissclub’s successful fundraising, despite recent layoffs, underscores both the ongoing challenges and the resilience of India’s D2C startup sector in a difficult funding environment.

 

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Apple to Shift Entire US iPhone Assembly to India by 2026

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Apple is set to relocate all assembly of iPhones destined for the US market from China to India by the end of 2026, marking its biggest manufacturing shift in decades. The move is driven by escalating US-China trade tensions and steep tariffs—up to 145% on Chinese imports—making Chinese assembly increasingly costly for Apple. Although some smartphone imports are temporarily exempt, a 20% duty still applies to Chinese-made iPhones entering the US.

 

India, in contrast, offers a more favorable trade environment, with a paused 26% reciprocal tariff and ongoing negotiations for a bilateral trade deal with the US that could shield Indian exports from future levies. Apple plans to more than double its current iPhone output in India, aiming to assemble over 60 million units annually for the US market. The company already produces about 25% of its global iPhones in India, working with partners like Foxconn, Tata Electronics, and Pegatron.

 

This shift is part of Apple’s broader strategy to diversify its supply chain and reduce reliance on China amid geopolitical risks. However, the transition’s success will depend on how quickly India can scale up its manufacturing capabilities and the outcome of ongoing trade negotiations.


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PhonePe’s PINCODE Launches 10-Minute Medicine Delivery in Cities

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PhonePe’s PINCODE app has launched a 24×7 online medicine delivery service in Bangalore, Mumbai, and Pune, promising delivery of both prescription and over-the-counter medicines within 10 minutes from nearby local medical shops. Unlike conventional e-pharmacies that use dark stores, PINCODE partners exclusively with neighborhood pharmacies, enabling faster deliveries and supporting local businesses in the digital economy.

Customers without prescriptions can select a “no prescription” option when ordering; a qualified doctor then provides a free teleconsultation and issues a digital prescription compliant with telemedicine guidelines, ensuring seamless access to medicines. The app offers competitive pricing by passing discounts from local pharmacies directly to customers and charges no delivery fees.

PINCODE’s hyperlocal model enhances healthcare accessibility and convenience while empowering local pharmacies, helping them remain integral to their communities and stimulating local economic growth. Launched in 2023, the app focuses on quick commerce with an emphasis on speed, reliability, and supporting local sellers.

In summary, PhonePe’s PINCODE app is transforming medicine delivery in major Indian cities by combining ultra-fast 10-minute delivery, free doctor consultations, and a hyperlocal sourcing model that benefits both consumers and neighborhood pharmacies.

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