Unacademy and Allen Career Institute in merger talks

New Delhi: The edtech company Unacademy is reportedly in advanced talks for a potential merger with Allen Career Institute, an offline test preparation centre. 

The discussions reportedly value Unacademy at approximately $800 million, a significant drop from its peak valuation of $3.4 billion in 2021. 

The move underscores the shifting landscape of edtech as companies increasingly explore offline avenues to bolster their growth and reach. 

Notably, Allen's dominance in Kota, the hub of test preparation, positions it as a strategic partner for Unacademy’s offline ambitions.

According to the Economic Times report, The negotiations have involved key stakeholders, including Unacademy CEO Gaurav Munjal and Allen investor Bodhi Tree Systems, spearheaded by Uday Shankar, Vice-Chairman of JioStar. 

A successful deal could create a powerful hybrid education entity, but it also hints at potential leadership changes, with reports suggesting Unacademy founders, including Munjal, Roman Saini, and Sumit Jain, might exit post-merger.

The final agreement depends on the approval of Allen’s founding Maheshwari family, who play a crucial role in the institute’s future direction. 

Despite the buzz, neither Unacademy nor Allen Career Institute has officially commented on the merger talks, leaving the industry to speculate on what could be a transformative deal in India’s education sector.