India’s second most valued edtech company Unacademy has struck another acquisition deal before ending 2020. The SoftBank and Facebook-backed company has acquired test prep startup NeoStencil for an undisclosed amount, its fifth acquisition this year. “NeoStencil has offers 500+ Courses to many students. and that we believe together we will create an enormous impact and build products that help our Learners crack their goals,” Unacademy co-founder and CEO Gaurav Munjal tweeted on Wednesday. the newest acquisition will help fortify Unacademy — the web learning platform for cracking competitive exams—growth within the test prep segment of edtech sector in India.
Originally launched as a YouTube channel in 2020 and later incorporated as a corporation in 2015, Unacademy has thus far made six acquisitions. Its first purchase of 2020 was Kreatyrx in March 2020 that offered products including online test series, video courses, postal courses, and training classes for GATE and SSC CGL aspirants. In June, Unacademy acquired serial entrepreneur and billionaire Bhavin Turakhia’s CodeChef for programmers to find out competitive programming. Following month, Unacademy had acquired PrepLadder – a web platform for medical entrance examination preparation for $50 million. Further, it had bought UPSC CSE prep platform Coursavy in September. Unacademy had also acquired a majority stake of 51 per cent in Mastree – a web platform for teenagers to hone communication skills – in July through a strategic investment of $5 million.
However, Unacademy’s first acquisition was the web study platform for state exams – WiFiStudy — wiped out 2018. “Our mission at Unacademy is to democratise knowledge and while we’ve began firmly towards that goal, we’ve an extended thanks to go,” added Munjal. Unacademy was catapulted to the unicorn club in September this year following a $150 million funding round led by SoftBank that valued at $1.45 billion. In November, it secured another round from Tiger Global and Dragoneer Investment Group to build up its valuation to $2 billion. It had raised $110 million from Facebook, General Atlantic, et al. in February this year at a valuation of around $510 million.
Unacademy has gradually became the most important startup within the online education space following the K-12 segment focused Byju’s valued at $12 billion. The startup had claimed over 1.5 lakh monthly live classes. the worth of the test prep market within the edtech segment in India is probably going to be worth $515 million in 2021, up from $43 million in 2016 at a compound annual rate of growth of 64 per cent, consistent with Statista.