The denial by Byju’s that it is exploring a merge or acquisition with rival Unacademy is likely due to the weakening global market conditions and escalating competition in the edtech industry. Several consolidation plays have been made in recent months, most notably Reed Learning’s acquisition of Knewton and Apollo Education Group’s purchase of Educate First. These moves are likely indicative of the market conditions, which are prompting more companies to look for ways to strengthen their positions.
It seems that Byju’s is considering a merger of Unacademy into Aakash Educational Services. This would be good news for both companies as it would give them more resources and support to grow even further.
Unacademy is known for its high-quality online education programs, and Aakash Educational Services is one of the largest providers of such courses in the country. However, reports suggest that Unacademy and Aakash are in talks to merge their operations. If this proposal goes through, it would create one of the largest providers of online education in the world.
SoftBank-backed Unacademy is leading the charge in India’s edtech space. The startup has significantly cut expenses as it looks to become profitable in the upcoming quarters, positioning itself as a top player in the market.
One of the co-founders and chief executive officer (CEO) of Unacademy, Gaurav Munjal, has announced to employees that the startup will be shutting down in winter due to a financial crisis. The company raised more money than it needed throughout its short lifespan, but this cannot last indefinitely. Munjal reassured employees that experimenting and growing their platform was always their top priority, even if it meant running out of money from time to time.
According to the source and presentations made by banks, Byju’s is in advanced discussions to go ahead with the IPO of Aakash, which could be worth up to $1 billion. Byju’s has been one of the most valuable startups in India and is currently in advanced discussions with several banks including Citi and Goldman Sachs. This would make Aakash one of the most valuable tech startups ever IPOsed.
The approval from its board of directors comes as a turnaround for the company, which had been struggling to find a buyer for the Indian mobile education startup it acquired for nearly $1 billion last year. The company is gearing up to file the paper work with the SEC and hopes to be list on exchanges in early 2019.
