Unacademy Joins The upGrad Campus
After months of negotiations and regulatory approvals, upGrad has officially completed the acquisition of rival Unacademy in a deal valued at just over $200 Mn, a 94% drop from the latter’s peak $3.5 Bn valuation in 2021. So, can the combined entity unlock real value?
Strategic Fit For upGrad: The acquisition gives upGrad, which focuses on upskilling, a foothold in K-12 and competitive exam preparation. Beyond test prep, CEO Ronnie Screwvala also highlighted Unacademy’s tech stack, brand equity and the global potential of its language-learning app, Airlearn, as key drivers for the acquisition.
The Upside For Unacademy: For the troubled edtech platform, combining forces with upGrad offers a better growth trajectory. The all-stock deal gives Unacademy shareholders a stake in upGrad, while retaining CEO Gaurav Munjal to lead its core verticals. It will also leverage upGrad’s upskilling network, expertise and cash to explore new avenues.
But, the deal did not happen overnight. It was, as Screwvala said, six years in the making.
From Unicorn To Exit: Starting as a YouTube channel in 2015, Unacademy raised $600 Mn during the peak of the pandemic to build an edtech juggernaut. However, the reopening of offline institutions hit demand, prompting layoffs, burn reduction and shutdowns of several verticals. To tide over the issues, Unacademy explored a potential sale to Allen and K-12 Techno.
But the discussions failed over valuation before a term sheet was finally signed with upGrad this year. With the deal now sealed, the work is cut out for the combined entity.
The Road Ahead: Combining two distinct corporate cultures and operating models presents an immediate execution challenge for upGrad. The merged entity will also have to prove that Unacademy’s consumer reach can drive sustainable operating margins and justify the $200 Mn price tag. So, can upGrad and Unacademy together build what eluded them separately? Let’s find out…
From The Editor’s Desk
Whatfix’s CEO Passes Away
- The cofounder and CEO of the SaaS soonicorn has passed away due to a cardiac arrest. He was about 50 years old. Friends and peers condoled his demise, remembering Batti as a friend and mentor who supported the wider Indian startup ecosystem.
- Founded in 2013 by Batti and Vara Kumar Namburu, Whatfix offers an AI-powered digital adoption platform that helps enterprises train employees and drive the adoption of software. It has grown to cater to more than 700 enterprises today.
- The Indian startup ecosystem has lost many luminaries this year. In July, Accel’s Akhilesh Agarwal passed away, while the ecosystem also mourned the demise of SaaS startup Xpedize’s cofounder Regan Mithani in March.
🗄️ ESDS Wraps Up Bumper IPO
- The enterprise cloud and AI company’s public issue was subscribed 135.88X on the final day of the bidding. QIBs subscribed their portion 261.5X, while NIIs and retail investors booked their quotas 192.9X and 39.7X, respectively.
- ESDS’ ₹720 Cr IPO, which comprises entirely a fresh issue of shares, is priced in the range of ₹408 to ₹429 per share. Meanwhile, PSL’s public issue also consists solely of a fresh issue of shares worth up to ₹680 Cr, with no OFS component.
- Meanwhile, Purple Style Labs’ IPO was subscribed a mere 24% on the second day of bidding. Retail investors led the charts (93% subscription), followed by NIIs (13%) and QIBs (6%).
💰 Yuma Energy Bags $35 Mn
- The battery swapping platform has raised around ₹333 Cr in its Series A round from existing backer Magna International to expand its footprint, diversify its client base and strengthen its tech platform.
- Founded in 2023 as a JV between Magna and Yulu, Yuma offers battery swapping infrastructure and services for EVs. It operates more than 2,500 charging stations across 18 Indian cities and has accumulated 1 Lakh batteries so far.
- Yuma operates in the growing Indian battery tech market, which is being driven by novel products, need for convenience and substantial subsidies from the Centre. It is eyeing a piece of the Indian EV market, which could become a $132 Bn opportunity by 2030.
🕵️♂️ Whistleblower Whiplash At Icertis
- Anand Subbaraman stepped down as the CEO of the SaaS giant in July after whistleblower complaints accused him of misconduct, inappropriate behaviour and favouritism towards a junior employee.
- This came after the company’s board received the complaint in May, prompting an internal probe and his eventual departure. CFO Rajat Bahri and board member Jim Moffatt have been appointed interim co-CEOs as the company searches for a successor.
- The allegations come as Icertis is working with Goldman Sachs to explore a potential sale at around a $5 Bn valuation. Founded in 2009, Icertis operates an AI-native contract lifecycle management platform serving enterprises in over 90 countries.
⛔ VinFast Rejigs India Playbook
- The Vietnamese EV giant has directed its suppliers to halt production of select cars in India to reassess costs. This came as VinFast could not achieve the planned costs for developing and sourcing parts locally.
- The OEM has sought details of investments already made by suppliers for the three vehicle programmes. It remains to be seen whether the vendors will be compensated for tooling, engineering and other investments undertaken for the projects.
- Just last year, VinFast planned to boost its annual EV production in India for exports to the Middle East and Africa. The OEM was banking on local manufacturing to reduce costs, but the cost conundrum appears to have put a spanner in the works.
Inc42 Markets
Inc42 Startup Spotlight
How AlgoFET Is Building Autonomous Docking Stations For Drones
Tactical drones may be getting smarter, but they still need to land, recharge or swap batteries with human help. This creates a bottleneck for continuous, remote operations. AlgoFET is building the infrastructure to change this with autonomous docking.
Ground Layer For Fleets: Founded in 2023, AlgoFET offers an integrated stack covering autonomous docking stations, battery management systems, high-power charging, embedded electronics and cloud-based fleet monitoring. Its AlgoDOCK enables precision landing and autonomous recharging, while AlgoBMS provides real-time battery health, diagnostics and predictive maintenance.
From Labs To the Field: Incubated at IISc, the Bengaluru-based startup operates a 12,000 sq ft manufacturing facility in Bengaluru. It claims to have deployed more than 2,000 units, with a pipeline exceeding 4,000 units and an order book worth around ₹100 Cr. Catering to drone makers and the Indian Army, the startup has so far deployed its products in areas like defence, agriculture, logistics, surveillance and infrastructure inspection.
The Road Ahead: Backed by Piper Serica, the startup now plans to focus on next-gen product development, in-house manufacturing expansion and deeper proprietary IP. It also plans to scale deployments and expand to the US and Europe. With India’s drone ecosystem projected to cross $3.2 Bn by 2030, can AlgoFET build the infrastructure that keeps drones airborne round the clock?
Infographic Of The Day
From Tata and Bikaji to dedicated players like Vratam and Upvasa, brands are lining up to capitalise on the latest D2C goldmine: fasting food. Whatever the reason someone’s fasting, there’s now a whole aisle for it…
