Edtech major BYJU’s on Friday denied reports that it is considering a merger of rival Gaurav Munjal-run Unacademy into Aakash Educational Services.
Reacting to a Money Control report which said, citing sources, that SoftBank-backed Unacademy is in talks for a potential merger with BYJU’s-owned Aakash, the company denied any such move.
“We strongly deny that BYJU’S is considering a merger of Unacademy into Aakash Educational Services. As a parent company, BYJU’S is committed to investing in the growth of Aakash Educational Services, which is growing at more than 50 percent year-on-year,” a BYJU spokesperson said in a statement.
An Aakash spokesperson said that they have had “absolutely no discussions with Unacademy or any other player to merge with Aakash Educational Services.
“Aakash is a market leader in our segment with an impeccable track record of delivery and results and we are focused on our organic growth and delivery to the lakhs of students that have trusted us,” the Aakash spokesperson added.
Unacademy declined to comment on the development.
Meanwhile, Byju Raveendran-run BYJU is in the advanced stages to raise $250 million at a flat valuation (at $22 billion the company last announced) as it struggles to repay a $1.2 billion term loan and turn profitable in 2023.
The latest funding round is in the “final stages of discussion and will be closed soon within a few weeks”, according to sources.
BYJU’s also declined to immediately comment on the development.