ALLEN Career Institute Shifts Gears with Doubtnut Acquisition, Blending Traditional Coaching with Online EdTech

• ByStartupStory     |    December 4, 2023

Kota’s ALLEN Career Institute has made a strategic move by acquiring Doubtnut, an edtech platform specializing in doubt-solving solutions. This acquisition showcases ALLEN’s shift toward technology-driven online learning solutions, a departure from its traditional dominance in offline competitive exam coaching.

The acquisition of Doubtnut by ALLEN reflects a shift in the edtech landscape where prominent e-learning companies are diversifying into offline coaching institutes. 

Founded in 1988 by Rajesh Maheshwari, ALLEN has an extensive track record of coaching millions of students for entrance tests like NEET, AIIMS, JEE Main, and JEE Advanced, boasting a nationwide presence with over 200 classroom centers across 53 cities.

According to Nitin Kukreja, CEO of ALLEN, “Doubtnut’s platform will allow us to greatly enhance the learning experience for our students. We are also excited by the prospects of offering ALLEN’s high-quality academic products to a wider audience.”

Doubtnut, founded in 2016 by Tanushree Nagori and Aditya Shankar, holds a considerable digital presence, reaching around 32 million students monthly through various digital platforms. The edtech platform has secured substantial funding from notable investors such as Omidyar Network, Tencent Holdings, and Peak XV.

Amid a funding slowdown in the Indian edtech startup ecosystem, the deal signifies a pivotal moment as investors seek sustainable monetization strategies and a clear path to profitability, favoring a return to pre-pandemic-style offline classrooms. 

Venture capital investments have notably declined, with data from Tracxn reporting a nearly 50% slump in the first seven months of 2023 compared to the previous year.

The challenges in the sector, including layoffs and startup closures, persist. Even BYJU’s, valued at $22 billion, faces hurdles while striving to maintain control over its subsidiary Aakash Institute, a direct competitor to ALLEN, and secure funding to manage debt repayment.

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