The Edtech Duopoly, Nazara’s Expansion Continues & More

Inside India’s Edtech Duopoly

The Indian edtech sector is entering its consolidation era. Last week, upGrad signed a deal to acquire Unacademy after a year of stretched deliberations. This has become one of the most significant edtech moves after BYJU’S’ $1 Bn acquisition of Aakash in 2021. Let’s unpack the strategic logic behind the acquisition.  

upGrad Finds Its Missing Piece: The unicorn spent the past decade building an upskilling stack, but it has always lacked a serious K-12 and test prep engine. Acquiring Unacademy plugs that hole, giving upGrad a large footprint in the segment, minus the need to build the stack from scratch. Unacademy’s $100 Mn cash reserves also help the edtech major cushion its IPO plans in the current tight funding environment.

A Behemoth Emerges: This deal effectively reshapes the competitive landscape. The combined upGrad-Unacademy entity boasted operating revenues of ₹2,400 Cr in FY25, placing it in direct competition with PW’s ₹2,887 Cr in the same period. With BYJU’S facing insolvency and giants like Aakash and Allen struggling with margin erosion, the market is splitting into two ends — a small group of large, well-funded players with scale and reach, and a long tail of smaller or struggling players.

Integration Challenges Loom: Despite the clear synergies between upGrad and Unacademy, the road ahead is fraught with friction. Merging two distinct corporate cultures and overlapping product lines will require brutal execution discipline. This could lead to further vertical shutdowns and staff rationalisation. On top of this, profitability pressures will only intensify as upGrad heads toward an eventual listing.

However, the consolidated entity has the potential to rewrite the country’s ailing edtech story with scale, capital discipline and product depth. With PW in the mix, is the Indian edtech ecosystem tilting towards a duopoly? Let’s find out…

From The Editor’s Desk

Nazara Acquires Spanish Startups

• The homegrown gaming major, via its UK entity, has signed a deal to acquire controlling stakes in Spanish casual gaming studio Bluetile Games and player engagement startup BestPlay Systems for a total of $100.3 Mn.
• Of the total, $88.4 Mn would fund the acquisition of 50% stake in Bluetile, while $11.9 Mn would go towards acquiring a controlling stake in BestPlay. While $59.7 Mn will be paid upfront, the remaining $40.6 Mn will be paid within six months of deal closure.
• Bluetile operates a portfolio of casual and social mobile games that host 22 Mn monthly active users. BestPlay runs a player engagement and distribution platform that helps gaming studios drive user acquisition and retention.

KKR To Pump $310 Mn In PMI 

• The PE giant has committed $310 Mn to acquire stakes in the electric bus maker and its electric bus platform, Allfleet. As part of the deal, KKR will pick up a minority stake in PMI Electro Mobility and a majority stake in Allfleet.
• The transaction will close in mid-2026 and will be subject to customary regulatory approvals. PMI Electro will utilise the fresh funds to expand its presence across India.
• Founded in 2017, PMI Electro Mobility sells a range of electric buses. To date, the startup claims to have deployed 3,000 electric buses across more than 30 Indian cities. Allfleet deploys electric buses for public transport services. 

PW Gets ₹263 Cr Tax Notice

• The edtech major has received a tax demand notice, totalling ₹263.3 Cr, from the income tax department. The company is in dock after the department treated investments received by the startup during AY24 as taxable income.
• PW now intends to challenge the tax order, saying that it has strong legal and factual grounds to file an appeal before the appropriate appellate authority.
• This comes barely four months after the unicorn listed on the bourses in November last year. PW, which offers a wide gamut of test prep courses, saw its net profit rise 33% YoY to ₹102.3 Cr in Q3 FY26, while the top line shot up 34% YoY to ₹1,082.4 Cr.

Top-Level Rejig At Perfios

• The fintech-focused SaaS unicorn has appointed former State Bank of India deputy MD Nitin Chugh as its group CEO and MD. Meanwhile, the core business will continue to be led by outgoing CEO Sabyasachi Goswami.
• Founded in 2008, Perfios provides software solutions to financial institutions for credit decisioning, analytics, onboarding automation, and due diligence. It claims to serve over 1,000 customers globally and has raised $430 Mn to date.
• The reshuffle comes as Perfios’ IPO plans continue to be in limbo. In 2024, the company said that it was looking to go public, but there have been no updates on the matter since. However, the startup acquired three startups last year to strengthen its BFSI play. 

Burger Singh Bags ₹82 Cr

• The QSR chain has raised nearly $8.8 Mn in its Series B round led by Artal Asia to scale its franchise-led business across India. The funds were raised at a valuation of ₹520 Cr.
• Founded in 2014, Burger Singh currently operates more than 200 outlets across over 100 cities. The company claims to have clocked a revenue of ₹117 Cr in FY25, driven by expansion across both metro and non-metro markets. 
• Positioning itself as a homegrown alternative to global burger chains, Burger Singh is eyeing a piece of the Indian QSR market, projected to become a $47 Bn opportunity by 2031.

Inc42 Markets

Inc42 Startup Spotlight

How CURAPOD Is Turning Light Into India’s Next Painkiller

Millions of Indians suffer from musculoskeletal pain, yet treatments rely heavily on medications with side effects and fleeting relief. To solve this, Hyderabad-based CURAPOD is pioneering a wearable device for drug-free, at-home pain management. 

Leaning Into Light Therapy: Founded in 2022, CURAPOD is building wearable medical devices that offer personalised pain management using light-based therapies. It harnesses photobiomodulation, targeted red light wavelengths that penetrate tissues to boost cellular repair and reduce inflammation without invasive procedures.

Wearables For Everyday Pain: The startup’s flagship device claims to treat back pain, joint disorders, muscle strains and sports injuries. Unlike generic pills, CURAPOD tailors light dosage to specific conditions, delivering effects safely. Portable design fits busy lifestyles, while “clinical” backing builds trust for chronic sufferers seeking sustainable alternatives to opioids or steroids.

Eye On The Prize: The Hyderabad-based startup is eyeing a piece of the growing phototherapy equipment market, which is projected to hit $22.7 Mn by 2030 amid rising demand for non-pharma solutions for chronic pain. So, can CURAPOD turn pain management into an everyday wellness routine?

Infographic Of The Day

From celebrity plugs to VC cheques, India’s fragrance startups are quietly building the next big D2C category.

The post The Edtech Duopoly, Nazara’s Expansion Continues & More appeared first on Inc42 Media.

https://ift.tt/bdExqt4