[Funding] Understanding the $3.4 Bn valuation of Unacademy and beyond-edtech plans

Gaurav Munjal, co-founder, Unacademy, has recently announced that the company has raised $440 million from Temasek Capital. Mirae Asset, SoftBank Vision Fund 2, General Atlantic, Tiger Global also participated in the round. Zomato co-founder and CEO, Deepinder Goyal and Oyo founder, Ritesh Agarwal's family office, and Aroa Ventures, also funded the (Series G?) round. This takes the Indian edtech giant's valuation to $3.4 Bn, up from $2 Bn last year. This also brings Unacademy’s to-date fundraise to over $850 Mn.

There are three major products that we will build and scale (or continue scaling), Gaurav added - Unacademy, Relevel, and Graphy. It has made 10 acquisitions so far; with the recent acquisition of gaming platform Rheo TV. The company will also use the funds to build and scale products, innovate and experiment, and create value for shareholders. Further, while other South Asian markets such as China, are facing edtech regulations, Indian edtechs like Unacademy will see a widening series of investments from companies that would otherwise invest in the former.

Funding breakdown

The transaction will largely include a primary infusion of funds. The startup will also facilitate a secondary share sale of $20 million to provide exits to one of its early investors as well as a slew of angel investors. The startup will, thus, have conducted secondary share sales worth $70-80 million in the past year. The company had last raised approx. $100 Million from Tiger Global valuing the edtech at $2 Bn.

Unacademy: Valuation growth in 2020

Unacademy helps students prepare for competitive exams to get into college; as well as those who are pursuing graduate-level courses. On its app, students watch live classes from educators and later engage in sessions to review topics in more detail. In recent months, the startup has held several online interviews of high-profile individuals, such as Indian politician Shashi Tharoor, on a range of topics, which has expanded its appeal beyond its student base.

Beyond EdTech plans - Upskilling and Careers by Unacademy

Gaurav Munjal, Unacademy co-founder, and CEO said the startup will deploy the fresh capital to broaden its bets on new categories such as upskilling, jobs, and hiring. Its upskilling and job platform, Relevel is “giving people a path to get their dream job irrespective of their educational background while Graphy is “empowering creators to build their online businesses to sell digital goods including NFTs,” he said in a tweet. In an interaction with ET, Munjal added that Unacademy “wants to position itself as a broader technology firm with multiple consumer-facing products, and not be restricted to edtech”.

Relevel by Unacademy competes with the likes of LinkedIn and Naukri. On the other hand, Careers by Unacademy competes with the likes of Upgrad. The startup competes with BYJU'S, which is India’s most valuable startup (Valuation of $16.5 billion), Vedantu, Classplus, and Teachmint. To make a mark in the offline schooling K12 segment, unlike any other edtech; (BYJU'S may come close with offline coaching centers, but not schooling); the company is in talks to acquire school chains Orchids International.