Sorry y’all, got a bit caught up with work today. It’s interesting that we’ve seen so many acquisitions of smaller startups in the last couple of weeks. Might be a function of companies finding it harder to raise capital and (possibly) taking low-ball acquisition offers in order to stay afloat during this pandemic. In that case, this is possibly the best time for larger startups & companies with capital to acquire companies, create adjacent product lines and/or future-proof their businesses. Today we have another acquisition as well as yet another company entering the grocery game:
In acquisition news today, Unacademy (the popular edtech platform) has acquired Kreatryx in an all-stock transaction to bolster it’s presence in the GATE & ESE test prep market.
I couldn’t find any funding news about Kreatryx but it seems like the company has been around since 2017 and has over 50k registered users, 100k hours of content watched, and over 4M questions attempted.
Unacademy’s content library has expanded significantly over the years covering courses for exams in India for school (9th-12th), engineering & medicine entrance exams, civil services (central & state), defense services and even a couple international entrance exams (Brazil & Indonesia).
Unacademy has really been pushing their subscription service Unacademy Plus so the long term goal might be to acquire smaller education content companies to add to their suite of content. Unacademy Plus has grown from 0 → 100,000 active subscribers within a year (though not sure what the breakdown of annual vs 6 month vs 3 month subscribers are).
Unacademy’s growth over the next couple of years might look akin to Netflix more than a traditional tech company, while the platform is important the core product of the company is the content they deliver. So I can expect them to spend a considerable amount of money either producing their own content, acquiring people/companies who also create content or (would be wild tho) syndicate content from education content creators on other platforms.
On the heals of BharatPe, ShopClues, and Snapdeal announcing that they would enter the groceries + essential products space, with a surge in those categories across the nation given the lockdown + pandemic.
I assume a lot of these eCommerce platforms have been hit hard in all areas during the pandemic (lower consumer demand, supply chain issues, logistic issues) but they’re pivoting and adapting to areas to have some of sort revenue inflow while their core segments have gone cold.
While these categories probably won’t work out at scale and probably won’t contribute significantly to the company’s GMV in the long-term it definitely makes sense to offer it in the short-term.
The article also points out an interesting distribution tactic for the future of consumer goods in India. The way Insurgent Brands use CRED/LBB for customer acquisition and distribution in India 1/1α, Brands targeting India 2/3 could use Meesho as a distribution platform. It would be interesting in the long-term if we see new brands pop-up in India for household goods and essential food products with better quality items priced for a slightly more price conscious user base.