Allen Career Institute, a leading coaching institute in India, has recently acquired Doubtnut, a young edtech startup, for a reported $10 million. This acquisition marks a significant turnaround for Doubtnut, which was once offered a deal worth $150 million by Byju’s, another major player in the Indian edtech market.
Key Takeaway
Allan Career Institute has acquired Doubtnut in a
0 million deal, giving a renewed opportunity to the edtech startup. The acquisition allows Allen to enhance its learning experience by leveraging Doubtnut’s learning app and technology.
Background of the Deal
Doubtnut, which offers a learning app that helps students solve math and science problems by taking photos of them, had raised over $52 million in funding prior to the acquisition. The startup gained attention in 2020 for its innovative use of machine learning and image recognition technology to provide answers in local languages. This approach aimed to cater to the needs of students in one of the largest education markets.
Despite its promising concept, Doubtnut faced challenges in securing an investor. Previous negotiations with Prosus Ventures and other potential investors failed due to disagreements on valuation. Byju’s, a major player in the Indian edtech industry, also attempted to acquire Doubtnut last year for a potential value of $150 million. However, the deal did not materialize.
Allen Career Institute’s Expansion
Allen Career Institute, renowned for its preparation courses for prestigious exams such as IIT JEE Mains & Advanced, NEET-UG, KVPY, and the Olympiads, decided to acquire Doubtnut to enhance its learning experience for students. The institute, which competes with Aakash Institute, acquired by Byju’s for nearly $1 billion last year, aims to leverage Doubtnut’s platform to address the core consumer need of resolving doubts effectively and timely in the education sector.
The acquisition of Doubtnut allows Allen Career Institute to offer its high-quality academic products to a wider audience, according to Nitin Kukreja, CEO of Allen. By leveraging the expertise and technology of both companies, Allen aims to create an enhanced learning experience for its students.
