Unacademy to Acquire Rheo TV: Latest EdTech News

Unacademy in Discussions to Acquire Rheo TV

Unacademy, a leading Indian online learning platform, is reportedly nearing an agreement to acquire Rheo TV. This information comes from three sources with knowledge of the ongoing negotiations.

Rheo TV: A Rising Gaming Platform

Rheo TV, a startup less than two years old, was established by former Unacademy employees. The company has developed a platform designed to facilitate live streaming of gameplay for professional gamers and enable them to generate revenue from their broadcasts.

Deal Valuation and Team Integration

The potential acquisition values Rheo TV at approximately $10 million, according to one source. However, TechCrunch has not been able to independently confirm these financial details. The proposed agreement involves the entire Rheo TV team, consisting of under a dozen individuals, joining Unacademy.

Existing Investors

Rheo TV has already secured investment from prominent firms including Lightspeed India Partners and Sequoia Capital India’s Surge. Notably, the founding team of Unacademy – Gaurav Munjal, Hemesh Singh, and Roman Saini – are also investors in the startup.

Responses to Inquiries

Gaurav Munjal and Sequoia Capital India have both declined to provide comment regarding the potential acquisition. A founder of Rheo TV has not yet responded to requests for information.

The Growing Appeal of Game Streaming

The startup is capitalizing on the increasing number of college students engaging with online gaming. They believe that, with the right platforms, many students will view game streaming as a legitimate career path.

Rheo TV’s Reward System

Rheo TV streamers are currently compensated based on factors such as their gameplay quality, the size of their follower base, and their performance in various gaming tournaments. The platform offers features comparable to those found on Twitch.

Unacademy’s Acquisition Strategy

Should this deal be finalized, it will represent the latest acquisition for Unacademy. The Bangalore-based company has already surpassed 5 million monthly active users across more than 10,000 cities in India.

Previous Acquisitions and Investments

Over the past two years, Unacademy, backed by investors like Facebook, Tiger Global, and SoftBank, has acquired WiFi Study, PrepLadder, and Coursavy. They have also made a strategic investment in Mastree.

Expansion into Creator Platforms

Unacademy also operates Graphy, a creator platform. This week, the company announced a $13 million fund to support individuals in launching their own online schools.

Growth of the Indian Online Education Market

Analysts at Bernstein predict significant growth in India’s online education market. They estimate it will reach $19.7 billion by 2030, a substantial increase from the $1 billion recorded last year.