Summary – UpGrad Acquiring Udacity
- Mumbai-based edtech unicorn upGrad, supported by investors like Temasek, is seeking $100 million in funding to acquire American education company Udacity, with 80% of the funds earmarked for the acquisition.
- upGrad’s founder Ronnie Screwvala is contributing personal capital, with additional financing expected from new and existing investors, maintaining the company’s valuation at around $2.5 billion.
- The acquisition, initially speculated at $100 million, is now poised at approximately $80 million, following upGrad’s significant revenue growth and expansion of its paid learner base.
Unacademy, a SoftBank-backed edtech business, has laid off 250 staff in the latest round of layoffs.These include around 100 workers from key activities such as business development and marketing, with the remainder coming from the sales department, according to persons familiar with the situation.
An Unacademy spokeswoman acknowledged the development but did not specify the number of staff affected.
“As part of our continued efforts to simplify processes and improve corporate efficiency, we recently completed a restructuring process. This was important in light of the company’s annual goals and vision, as we focus on long-term growth and profitability. As a result, several responsibilities have been disrupted. While this change may be difficult, we will assist all affected persons at this time,” added the spokeswoman.
Unacademy is apparently looking into a merger with K-12 Techno Services, which controls Orchid International, a school network.
Unacademy has verified the layoffs.
“As part of our continued efforts to simplify processes and improve corporate efficiency, we recently completed a restructuring process. This was crucial given the company’s aims and vision for the year, as we focus all of our efforts on long-term growth and profitability. As a result, some functions have been impacted,” the business stated in a statement. Peak XV Partners and General Atlantic are among its investors.
This is Unacademy’s third wave of layoffs in as many years. In March 2023, it decreased its staff by 12%, or around 380 individuals. In April 2022, the firm sacked over 1,000 contractual and full-time employees.
Hemesh Singh, Unacademy’s cofounder, stepped down as chief technology officer last month and has since become an advisor.
According to Entrackr, Unacademy’s operational income increased by 26% to Rs 907 crore in FY23, while losses fell by nearly 40% to Rs 1,004 crore.
The corporation stated at the start of fiscal year 24 that it was close to attaining group profitability. The company has yet to file its audited annual report for fiscal year 24.
Gaurav Munjal, CEO, founded Uncademy with his pals Roman Saini and Hemesh Singh in 2015. They launched it as a YouTube effort in 2010.
Munjal, the company’s CEO, assured staff in December that it had Rs 1,800 crore (roughly $216 million) in reserves, providing a four-year cash runway. He also stated that Unacademy has reduced its cash burn by 60% in 2023 and expected to extend its runway to eight years in 2024 with additional reductions in burn.
CONCLUSION : Unacademy, a SoftBank-backed edtech business, has announced a series of staff cuts, including around 100 from key business development and marketing roles and the remaining sales departm