News Summary

Unacademy, once a leading edtech startup in India, is now valued at less than $500 million, marking an 85% drop from its peak valuation of $3.5 billion during the pandemic. The company’s CEO, Gaurav Munjal, confirmed the valuation decline and ongoing merger and acquisition discussions. The decline is attributed to a post-pandemic shift in market dynamics, where demand decreased as students returned to offline classes and competitors offered lower-priced alternatives. Unacademy has been restructuring to reduce costs, cutting its annual burn significantly, and refocusing on its core subscription model. The startup has raised about $854.3 million across 13 funding rounds, with backers including SoftBank and Tiger Global. Recent reports suggest that rival UpGrad may acquire Unacademy for $300 to $400 million.