Temasek in talks to lead Unacademy’s $400 million round

The six-year-old edtech startup is looking to raise its largest round of funding with an over 60% jump in valuation in six months as late-stage investor interest in the sector gains momentum

author-imageauthor-image

By 

Aditi Shrivastava

Madhav Chanchani

May 28, 2021

6 Min Read

After roping in a slew of investors including social networking giant Facebook and Japan’s SoftBank Vision Fund last year, education technology startup Unacademy is in advanced discussions to get Temasek as a backer for its new round of fundraising. 

Unacademy kicked off its campaign with a plan to mop up $300-400 million as it looks to build a war chest for acquisitions and further growth, said two people directly briefed on the matter. 

The new round of funding pegs the pre-money valuation of Unacademy at around $3.2 billion, they said. The final valuation of the six-year-old company could go above $3.5 billion post-money, depending on the capital raised. 

That would be an increase of 60-75% in post-money valuation in less than six months. Unacademy was valued at close to $2 billion in November when it raised funding from US-based investment firms Tiger Global Management and Dragoneer Investment Group. 

“Temasek is likely to come in as one of the lead investors while existing backers are also likely to invest a significant amount. They have signed a term sheet,” said one of the sources. “There is a conversation going on with other new investors as well to participate in the round.” 

Edtech startups are on an accelerated growth path with the onset of a new academic year and a fresh set of lockdowns to contain the second wave of the pandemic. Investor interest in the space remains high, along with a broader fundraising boom in India’s startup ecosystem. And the valuations are getting richer.

Why

Subscribe

Pricing

As a premium subscriber, you will get access to 3+ premium articles a week
Limited time offer
Launch price
INR
2,399
/ Year
INR 3,999
Save 40% with our launch offer.
Please apply the code at checkout.

copyCopy Code

Upgrade Now

Why

Subscribe

As a premium subscriber, you will get access to 3+ premium articles a week

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and also disruptive startups so you can make better decisions.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Filtering the Noise

New economy companies cannot always be evaluated using traditional methods. We analyze the relevant metrics, ask the tough questions to get you the right picture.

Inside View

We thrive on inside scoops and decoding boardroom conversations so we can bring you a 360° view of what’s happening at India’s high-growth companies.
share-button
like-button
share-button

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.