Education tech startup Unacademy is in talks to raise $100 million in a Series E round at a valuation of $400 million, said three people aware of the matter, requesting anonymity.
New investors expected to participate in the round include New York-based private equity firm General Atlantic (GA) and GGV Capital, a global venture capital firm with more than $6 billion in assets under management.
The four-year-old startup allows educators to create videos on its website and app for users for courses from school level learning to college entrance exams across streams, besides for more advanced courses such as civil service exams and MBA entrance tests.
While its content was mostly free so far, earlier this year, it started Unacademy Plus, a subscription-based service.
“Investors are bullish about the company given the subscription’s prospects, which has already become the main revenue driver for the startup, unlike other companies, which depend on advertisement revenue to subsidise their core offering,” said the first of the three people cited above.
Unacademy posted ₹11.6 crore in revenue and a loss of ₹90 crore in FY19, according to a report from Entrackr, an online news portal.
However, its entire revenue came from subscriptions, and rose 6.6 times compared to the previous year, while losses grew nearly four times.