Indian EdTech unicorns Unacademy and K12 Techno Services in merger talks
Unacademy, the Bengaluru-based edtech unicorn, is currently in advanced discussions to merge with K12 Techno Services, according to sources familiar with the matter.
K12 Techno Services operates under the brand 'Orchid, The International School', providing management services to ICSE and CBSE curriculum schools from kindergarten to Class 12. Negotiations between the two companies have been ongoing for several weeks, with discussions focusing on the terms of the merger.
Sources indicate that the proposed merger would result in both Unacademy and K12 Techno Services holding an equal 50% stake in the combined entity. Unacademy had previously invested in Orchids International Schools three years ago, establishing a relationship that could now evolve through this merger. Peak XV Partners, a common investor in both entities, adds a strategic dimension to the discussions.
While finer details such as the valuation of the combined entity are yet to be finalized, this move marks a significant step for Unacademy, which had pursued an acquisition of Orchids International Schools in 2021 without success.
Founded 14 years ago, K12 Techno Services offers a wide array of educational services, content, and technological solutions to more than 900 educational institutions across India. The company's portfolio includes its proprietary curriculum and technology platform tailored for ICSE and CBSE schools spanning from kindergarten through Class XII.
The potential merger underscores Unacademy's strategic efforts to expand its footprint in the educational sector, leveraging K12 Techno Services' established presence and expertise. As the negotiations progress, stakeholders await further developments that could reshape the landscape of India's edtech industry.