From $3.4 billion to $800 million: Unacademy may be looking for a buyer as valuation takes a major hit

Unacademy is reportedly in talks to be acquired. Allen Career Institute, an offline test preparation centre, is likely to offer a deal that could value the edtech firm at $800 million. This represents a significant drop from its peak valuation of $3.4 billion. According to a report by the Economic Times, three unnamed sources in the know of this deal said that it has been under discussion for several months and is now awaiting final approval from Allen’s promoters, the Maheshwari family. If successful, this acquisition would mark a major consolidation in the edtech sector, which has been struggling with a post-Covid slowdown and the fallout from Byju’s bankruptcy and financial irregularities. Unacademy, which started as a YouTube channel ten years ago, has also shifted to an offline model after facing challenges in the online-only market.