Allen Career Institute, a Kota-based test prep startup, has announced the acquisition of Doubtnut, an AI-powered doubt-solving platform, to develop technology-led learning solutions to improve students’ learning outcomes. According to the official statement, after the acquisition, Doubtnut’s team will continue focusing on building doubt resolution experience for students of Allen and Doubtnut.
Doubtnut, founded in 2017 by IIT-Delhi alumni Tanushree Nagori and Aditya Shankar, is a multilingual online learning platform that uses technologies such as image recognition, natural language processing, and proprietary AI/ML algorithms. It provides video-based solutions to students’ queries and has a monthly reach of 32 million students across digital apps, websites and YouTube channels. Its investors include well-known names such as Peak XV Partners, Omidyar Network India, and Waterbridge Ventures. In 2021, the platform received INR 224 Cr (about $31 million) in funding led by Hong Kong-based venture capital firm SIG Investments and James Murdoch’s Lupa Systems.
Speaking on the deal, CEO of Allen Career Institute, Nitin Kukreja, said:
Timely and effective resolution of doubts is a core consumer need in education. Doubtnut’s platform will allow us to enhance the learning experience for our students greatly. We are also excited by the prospect of offering Allen’s high-quality academic products to a broader audience.
The companies have not disclosed the specifics of the current transaction. However, according to Entrackr, which was the first to report on a potential deal between the companies, it is said to be a stress deal worth around $10 million.
As per the statement, Allen will bring its curriculum and academic offerings to Doubtnut’s student base and cater to their needs.
Co-founder of Doubtnut, Aditya Shankar, stated:
Doubtnut’s mission is to bring education to every student across India using technology and high-quality content. We resonate with Allen’s vision of creating technology products to improve learning outcomes.
Established in 1988, ALLEN has consolidated its position as a significant coaching institute in the country—particularly for entrance exams in medicine and engineering—with over 200 classroom centres in 53 cities in India, coaching over 2.8 million students. ALLEN Digital, the company’s digital arm, has launched interactive learning websites and mobile apps for undergraduate and postgraduate courses. It has also made several key C-suite hires in the last year to ensure it has the requisite leadership to spearhead its digital business.
In May 2022, ALLEN bagged funding of $600 million from Bodhi Tree Systems. Maheshwari said the company has allocated 20% of its funds towards mergers and acquisitions, with some of these acquisitions happening by the end of this year or next.