"EDITION 149"

Published: 9/3/2020

Good morning, it's Thursday and we've got some cool news for y'all- tomorrow is the newsletter's 150th edition and in honor of that we've got a very special newsletter. Vedica will be interviewing YCombinator's Anu Hariharan about YC & India and we shall be posting the transcript as the interview. Coming to the news today- 3one4 raises a new fund & Unacademy is now a unicorn!

  • https://bit.ly/3hTMr23: Unacademy raises $150M from SoftBank, is now valued at $1.45B
  • ➡️ Unacademy is officially India's second EdTech unicorn, raising $150M from SoftBank's Vision Fund 2 which now valued the company at $1.45B. The company had been in talks to raise an additional $100-$150 from June so it's great to see the announcement of the deal.

    ➡️ Some angel investors in the company have also undertaken partial exits with the new fundraise, while Unacademy's earliest institutional investor, Blume, has continued to participate in the round (and has not participated in every single round since it's initial investment) and Unacademy is their first unicorn which will likely return the firm's second fund.

    ➡️ As we all know, the pandemic has resulted in the rapid digitization of education in the nation and companies like BYJUs, Unacademy & Vedantu have benefited from it. The company now has 350k active paid subscribers and will primarily use the proceeds to launch its K-12 product in the next month, which will see it go head-to-head will fellow Sequoia investee- BYJUs

    ➡️ It's also great to see SoftBank back making bets in the country- the investment firm has seen a rough year but might have a winner in Unacademy, which aims to go cash flow positive in the next 18 months. All I can is that I hope they "crack it".

    2. https://tcrn.ch/3lJmqEF: 3one4 raises third fund with a corpus of $100M

    ➡️ Today seems to be a great day for seed firms- 3one4 has announced a new early stage fund of $100M to continue investing in Indian startups. The firm has already secured $40M worth of commitments from new & existing LPs.

    ➡️ This is the firm's third fund, which just closed its previous fund just last year, and the firm now has a total of $210M under management. The firm founded by Pranav Pai and Siddarth Pai, sons of TV Mohandas Pai, has now backed over 50 startups in the country.

    ➡️ With the seed stage heating up, this bolsters the firm's dry powder which will continue to make seed & pre-Series A bets (and will also make select Series A & later investments). The firm's first two funds have already performed quite well so it's no surprise that they have raised a new fund.

    ➡️ The firm will invest in another 25-30 companies through this new fund and will largely invest across a couple key sectors- direct-to-consumer tech, media and content, fintech, deep technology and SaaS and enterprise automation.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/harish_io/status/1301172113869479936

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