Why Are Edtech Giants Unacademy And K-12 Techno Are Merging?

Edtech Industry Overview

India's edtech boom until 2022 contrasted sharply with recent layoffs and shutdowns.

Loss of Trust

High-profile scandals like BYJU’S governance issues have undermined trust in edtech.

Unacademy and K-12 Merger Talks

Unacademy and K-12 Techno Services explore a potential 50:50 partnership for strategic synergy.

Deal Status

 Initial discussions ongoing; K-12 Techno may lean towards acquiring Unacademy rather than a merger.

K-12 Techno’s Perspective

K-12 Techno seeks profitable verticals within Unacademy amid concerns about its financial losses and margins.

Financial Comparison

K-12 Techno boasts EBITDA positivity with INR 100 Cr in FY24, contrasting Unacademy's higher revenue but significant losses in FY23.

Strategic Fit

Unacademy's test prep strength could complement K-12 Techno's educational offerings, potentially enhancing revenue streams.

Merger Or Acquisition? Unacademy, K-12 Techno Services And Edtech’s Trust Deficit