=Covid-19 has created new opportunities for online learning as physical classes seem a distant reality presently. This has benefitted the EdTech segment massively as they are recording unmatched growth. One of the biggest EdTech firm of the country, Unacademy is planning to raise another $100-150 million in fresh round of funding which will give it a direct entry in unicorn club.
In the beginning of the year, the firm raised $110 million in a round led by Facebook and blue-chip private equity firm, General Atlantic. According to sources, existing investors including General Atlantic and Steadview Capital are expected to double their stakes and other global strategic and finance investors like US-based Hedge Funds and China’s Tencent have shown their interest in the company. The company’s valuation is expected to reach $1 billion if the investment is finalized.
The source aware of the development stated that there are multiple funds in the mix presently and it will take about four to six weeks to have a finalized list. During an interview in March, Gaurav Munjal, CEO of Unacademy said that their platform has crossed 1 billion minutes watch time and their educators have taken over 100,000 live classes, a quarter of which was free for the month.
Unacademy has started a subscription-based model for standards 9th to 12th and have been hiring educators from across the country. An investor involved in the discussion said, “The growth in the last few months has been massive, and the belief is that Covid-19 can structurally change consumption of education to online.”
Sequoia Capital, Nexus Venture Partners, Blume Ventures, Steadview Capital, Flipkart CEO Kalyan Krishnamurthy and Udaan cofounder Sujeet Kumar are a few other stakeholders in the EdTech firm. The last round in February brought the company’s valuation to $510 million which can be doubled post this round if things proceed in right direction.
Founded by Gaurav Munjal, Roman Saini and Hemesh Singh in 2015, Unacademy has become investors’ favorite during the Covid period as its services are in demand. They have a channel on YouTube which has over 150 million views monthly and helps in bringing learners to its platform.