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Weekly Newsletter is Here! 
Allen’s $800M acquisition of Unacademy
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Unlisted Share News:
- Allen Career Institute is in advanced talks to acquire Unacademy for $800 million, a significant drop from its 2021 valuation of $3.4 billion, with the deal pending approval from Allen's promoters.
Quick Insight 💡
Is it the end of the road for Unacademy as ALLEN prepares to acquire the ed-tech startup for $800M, a valuation lower than its total funding of $838.5M?
Why do startups like Unacademy struggle despite billion-dollar valuations? What went wrong for Unacademy, a company once valued at $3.4 billion? The answer lies in its unsustainable growth strategy and the broader slowdown in India's ed-tech sector. When the pandemic spurred a digital learning boom, Unacademy scaled rapidly, raising massive funds and expanding aggressively, including opening 60 offline centers.
But was this pivot a smart move?
The numbers suggest otherwise. Despite growing revenues from ₹21.8 crore in FY19 to ₹1,044 crore in FY23, Unacademy couldn't overcome its losses, which stood at ₹631 crore in FY24—a sharp drop from the ₹2,848 crore loss in FY22 but still unsustainable.
Byju’s, another ed-tech giant, faced a similar fate, with valuation cuts and layoffs dominating headlines. This raises a critical question: are these billion-dollar startups over-reliant on investor funding without a clear path to profitability? The 87% drop in ed-tech funding from 2021 to 2023 further underscores how fragile this sector has become. ALLEN's acquisition of Unacademy signals consolidation, but the lesson is clear—scaling without profitability is like building a castle on sand. For investors, the takeaway is to look beyond valuations and dig deeper into financial sustainability before betting on the next unicorn.
2. SEBI Approves 7 IPOs Worth ₹12,000 Crore
- Ecom Express: ₹2,600 crore IPO for infrastructure expansion and debt reduction.
- International Gemological Institute (IGI): ₹4,000 crore IPO for acquisitions and corporate expansion.
- Ventive Hospitality: ₹2,000 crore IPO to reduce debt and fund luxury projects.
- Carraro India: ₹1,811 crore offer-for-sale by the promoter.
- Smartworks Coworking Spaces: ₹550 crore IPO for expansion and loan repayment.
- Trualt Bioenergy: ₹750 crore IPO for multi-feed stock operations and working capital.
- Concord Enviro Systems: ₹192 crore IPO for capital expenditure and debt reduction.
3. Gurugram-based fintech MobiKwik aims to raise ₹572 crore in its IPO opening December 11, with proceeds earmarked for growth, R&D, and technology upgrades. Valuation sees a sharp dip of 71.6% from 2021.
Comparison of Mobiwik vs Paytm
4. Paytm to Sell Stake in Japan's PayPay to SoftBank for $250 Million: Paytm's parent company, One97 Communications, plans to sell its stake in Japan's PayPay Corporation to SoftBank Group for $250 million. The move aligns with Paytm's strategy to divest non-core assets and strengthen its core payments business.
5. Flipkart announces "Flipkart Minutes," offering 10-minute delivery for medicines, intensifying competition in India’s fast-growing quick commerce sector.
6. Myntra Launches 30-Minute Delivery with 'M-Now': E-commerce giant Myntra introduces 'M-Now,' a 30-minute delivery service for 10,000 styles across fashion, beauty, and home, aiming to expand to 1 lakh styles in the next few months.
Quick Insight 💡
Why is this happening?
Why is Myntra jumping into quick commerce with M-Now? It’s responding to growing consumer demand for speed and convenience. Urban shoppers, especially the trend-conscious, now expect instant delivery for fashion, just as they do for groceries. This move gives Myntra a competitive edge over rivals like Blinkit and Zepto, which are still expanding their fashion offerings.
what makes this model sustainable? Myntra leverages dark stores, brand retail outlets, and potentially Flipkart’s logistics infrastructure, creating a cost-effective and scalable system. With plans to expand to 100,000 products and major cities like Mumbai, Delhi, and Pune, Myntra isn’t just chasing a trend—it’s setting a new benchmark for delivery speed in the fashion industry.
7. Tata Projects Eyes IPO in 12–18 Months: Tata Projects plans to go public within 12–18 months, focusing on financial fitness and strong cash flow before listing. The company reported a ₹82 crore profit in 2024, with an order book of ₹44,000 crore.
8. LG Electronics India has filed for an IPO with SEBI to sell up to 10.2 crore shares, representing 15% of the company’s stake. The IPO is expected to raise $1 billion to $1.5 billion, which would value LG Electronics India at around $13 billion.
Financials: In FY24, LG Electronics India saw a 7% rise in revenue, reaching Rs 21,352 crore and a 12% increase in profit, totaling Rs 1,511 crore.
9. OYO Expands SUNDAY Brand: OYO launches its premium SUNDAY brand in Dubai and London, expanding its luxury offerings.
10. Cochin Airport Expansion: Cochin International Airport launches a ₹265 crore tender for terminal expansion to handle more traffic.
11. RRP S4E Wins ₹18 Crore Order: RRP S4E Innovations secures an ₹18 crore contract from Adani PLR to supply Reflex Sight Mepro units.
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