Allen Institute in talks to acquire Unacademy at $800 million valuation: ET

Allen Career Institute is in advanced discussions to acquire Unacademy for $800 million, a sharp decline from the edtech startup’s $3.4 billion valuation in 2021, as reported by Economic Times.

Negotiations for the merger have been ongoing for months and are awaiting approval from Allen's promoters, the Maheshwari family. Investment banks are currently working on the share swap ratio, which will determine the equity offered to Unacademy’s shareholders. The deal also includes potential cash payouts for Unacademy’s founders and early investors, according to the report. The share swap ratio will outline the number of Allen shares to be offered for each Unacademy share.

If completed, the deal would represent one of the biggest mergers in India's edtech industry. The $800 million valuation accounts for Unacademy's cash reserves of $160 million. The talks are being led by Bodhi Tree, an investor in Allen, and Unacademy co-founder Gaurav Munjal.

Following the merger, Unacademy's co-founders—Gaurav Munjal, Roman Saini, and Sumit Jain—are expected to exit the company, adding to the departure of CTO Hemesh Singh earlier this year. The company has been making cost-cutting moves, including laying off 250 employees in July and seeing several top executives leave as part of ongoing restructuring efforts.