Facebook-backed online learning platform Unacademy is in talks with Japanese investment behemoth SoftBank to raise funding, per a report by Money Control.
Negotiations are said to be at an advanced stage.
If talks fructify, Softbank could lead a $150-200 million funding round in Unacademy at a valuation of $1.2 billion, thereby making it a unicorn, added the report, quoting sources.
The proposed transaction highlights how edtech startups in India are increasingly becoming favourites of risk capital investors amidst the COVID-19 crisis that has spruced up demand for online learning.
Unacademy, run by Sorting Hat Technologies Pvt. Ltd, was established in 2015. Having begun as a YouTube channel, it today has over 200,000 subscribers on its paid platform Unacademy Plus.
Unacademy offers learning programmes for school students and those appearing for entrance exams across diverse categories – those as specialized as civil services exams and MBA.
The company recently made headlines when it acquired edtech startup PrepLadder for $50 million to expand its medical entrance examination category such as NEET PG and FMGE.
Amongst significant transactions that have been sealed in the sector, edtech unicorn Byju’s recently raised an undisclosed amount from Mary Meeker’s technology investment firm Bond. Earlier in June, we at DealStreetAsia had reported about Byju’s being in talks with Hong Kong-headquartered Baring Private Equity Asia, as it looks to rake in a total of about $500-600 million in fresh financing to expand its operations.
In February 2020, Unacademy was reported to raise about $110 million in Series E financing from investors including Facebook and General Atlantic.
Other Indian edtech startups that raised capital this year include Cuemath, Vedantu, Pariksha, and Classplus and Flinto Learning Solutions, among others.