Unacademy raises $440 million in fresh funding, valued at $3.44 bn

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August 03, 2021 12:51 AM

Mirae Asset, Aroa Ventures, the family office of Oyo founder Ritesh Agarwal and Zomato CEO & co-founder Deepinder Goyal also participated in the funding round that gave an exit to some of Unacademy’s angel investors, the company said in a statement on Monday.

The segment will see more than 37 million paid users by 2025, according to a report by EY-IVCA.

Unacademy has raised a fresh $440 million in funding led by Temasek at a post-money valuation of $3.44 billion.
The investment, that is part of the company’s series H financial round, was also heavily backed by General Atlantic, Tiger Global and SoftBank Vision Fund.

Mirae Asset, Aroa Ventures, the family office of Oyo founder Ritesh Agarwal and Zomato CEO & co-founder Deepinder Goyal also participated in the funding round that gave an exit to some of Unacademy’s angel investors, the company said in a statement on Monday.

The funding comes more than six months after the edtech firm concluded a secondary transaction in which a clutch of investors including Tiger Global and Dragoneer Investment Group collectively acquired additional shares worth $50 million from existing backers.

Unacademy, which turned unicorn in September last year after SoftBank led a $150 million investment in the company, was last valued at $2 billion when it secured another estimated $75-$100 million financing from investors in November last year.

In all, investors have infused over $850 million into Unacademy. The firm claimed that its valuation has risen almost ten times over the last 18 months.

In a tweet, Gaurav Munjal, founder at Unacademy Group said that the fresh capital will be used to build and scale varied product offerings.

While the core test prep business segment will continue to see investments, a good portion of the funding will be deployed to grow products like Relevel, a hiring test platform that enables job-seekers to showcase their skills through tests and secure employment in companies and content platform Graphy.

Started as a YouTube channel by Gaurav Munjal in 2010, Unacademy today has a network of more than 50,000 registered educators and over 62 million learners across 5,000 cities.

The ed-tech sector is buzzing with activity. Rival Byju’s that garnered about $1.5 billion earlier this year from a slew of marquee investors in tranches spent a whopping over $2 billion on acquisitions so far this year. The ed-tech sector has already attracted $1.86 billion in funding in 2021.

Analysts estimate the market size of the Indian ed-tech sector to grow by 3.7 times in the next five years, to touch $10.4 billion by 2025 from $2.8 billion in 2020. The segment will see more than 37 million paid users by 2025, according to a report by EY-IVCA.

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