Discussions between Unacademy, an edtech unicorn, and K-12 Techno Services, a profitable educational service provider, have sparked interest as they may lead to an acquisition rather than a merger. Although talks are preliminary, K-12 Techno is assessing Unacademy’s potential to add value, especially in the B2C test prep segment for its Orchids International Schools. Over the past two years, India’s edtech sector has faced significant challenges including notable shutdowns and layoffs, exacerbated by high-profile corporate governance issues like those seen at BYJUS. Both companies’ financial standings reveal stark contrasts; K-12 Techno is EBITDA positive, whereas Unacademy struggles with substantial losses despite revenue growth. The negotiations also highlight broader industry concerns over profitability and trust, emphasizing the importance of a thorough evaluation process before any deal can be finalized.

Education Technology (Edtech), K-12 Education,India