Merger and Acquisition

iNurture Education acquires Youth4Work brand to form Y4W Learning Pvt Ltd

• ByStartupStory     |    April 3, 2023

iNurture Education, an edtech startup, has acquired the brand ‘Youth4Work’ from Jag Bros Consultants for an undisclosed amount. The acquisition has led to the formation of a new subsidiary, Y4W Learning Pvt Ltd, jointly owned by iNurture Education and Youth4Work. iNurture Education will hold 83.5% equity in the new venture through its founder and MD, Ashwin Ajila.

iNurture Education, an edtech startup, has acquired the brand ‘Youth4Work’ from Jag Bros Consultants, forming a new subsidiary called Y4W Learning Pvt Ltd. The venture will use Youth4Work’s assessment platform to generate leads and grow enrollments for National Education Policy 2020 (NEP) programmes, with an office set to be established in Noida and 50-60 employees. iNurture Education partners with Indian and international academic institutions to offer undergraduate and postgraduate courses in various fields such as management, computer science, finance, IT, media, and machine learning, among others.

iNurture Education secured $15 million in funding from ADM Capital in 2022, a mix of debt and equity, resulting in existing investor VenturEast’s exit. The edtech startup has also been backed by Blacksoil, Bertelsmann India Investments, Ascent Capital, Kimera, and BDMI. In 2018, it acquired KRACKiN, another edtech startup. Youth4Work, founded by Rachit Jain in 2012, offers various online practice exams such as CPT and IPCC, management, government, defense, and engineering entrance tests, in addition to operating as a job portal that connects employers and job seekers. The acquisition led to the formation of a new subsidiary, Y4W Learning Pvt Ltd, that will work on leads generated from Youth4Work’s assessment platform to increase enrollments in National Education Policy 2020 programs.

The startup has secured $500K in funding from a group of angel investors so far. In addition to iNurture’s recent acquisition of Youth4Work, several acquisitions have been made in the edtech industry. Recently, LEAD, an edtech giant, acquired Pearson’s India K-12 learning business, while PhysicsWallah, an edtech unicorn, acquired K-12 online learning platform Knowledge Planet to expand across the GCC region by 2024. Edtech startup Uolo acquired online learning platform Tekie in January of this year to provide affordable online learning programs to school students.

It should be noted that iNurture’s acquisition comes during a challenging time for the Indian edtech industry, which is facing a funding crisis due to market volatility, low investor confidence, and geopolitical tensions. The reopening of schools and colleges has also affected the growth of Indian edtech startups. This has led to poor performance by edtech giants like BYJU’S, Unacademy, Vedantu, Teachmint, and upGrad, making investors cautious about investing in the sector. In response to these challenges, edtech startups are adopting survival strategies such as a hybrid model, downsizing their businesses, closing unprofitable subsidiaries, and laying off employees. 

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