Recently, Indian EdTech giant Byju’s has decided not to acquire Unacademy, an educaiton platform that connects students to educators. This decision comes amidst reports that Byju’s was in talks with Unacademy since December last year for a potential merger.
Byju’s is one of India’s most successful EdTech companies and is well-known for providing quality K-12 and higher education services. On the other hand, Unacademy is an online platform, which helps learners connect with educators and their content.
This could have been a lucrative deal for both the companies as they both cater to the same customers and have a presence in the same educational spaces. The merger would have created synergies and allowed both companies to offer more to their customers in terms of curriculum, pricing, and technological advancement.
The reason for the sudden withdrawal of Byju’s from the talks is believed to be the increase in valuation of Unacademy. As the talks progressed, Unacademy’s investors pushed for a much higher valuation than what Byju’s wanted for the deal. The gap between the two was too wide to be bridged, and the talks eventually derailed.
Byju’s acquisition of Unacademy could have been a game-changer for the EdTech industry in India. It could have seen Byju’s significantly expand its customer base, diversify its offerings, and become even more competitive with the likes of other major companies such as Khan Academy and Udemy. But as of now, both the companies will have to find alternative methods to grow in the sector.
It is yet to be seen what lies in store for both the companies in the future. Though it was a limited scope deal, it was a huge opportunity in terms of the future growth of both the companies. It will be interesting to keep track of how the landscape of the Indian EdTech industry changes in the upcoming years.
