Unacademy co-founder and CEO Gaurav Munjal has quashed recent rumours about the edtech giant exploring a potential sale or merger. In a LinkedIn post on December 7, Munjal stated emphatically, “We are building Unacademy for the long run. We are not doing any sale or M&A. Ignore the rumours.”
His statement follows reports suggesting that Unacademy was in advanced discussions with Allen Career Institute for a possible acquisition deal worth $800 million. Dismissing these claims, Munjal emphasized that the company remains focused on achieving long-term goals.
Highlighting the company’s performance and future trajectory, Munjal said, “2024 will be the best year for Unacademy in terms of growth in the offline business and overall unit economics.”
Unacademy reported a 30% growth in its offline centres this year, with a significant improvement in unit economics. While the online test preparation segment experienced a decline, Munjal noted that its unit economics also “improved significantly.”
In addition, the company reduced its cash burn by 50% at the group level and currently boasts a cash reserve of $170 million with no debt, providing a runway of over four years.
Unacademy’s SaaS vertical, Graphy, achieved a 40% profitable growth in 2024. Meanwhile, its language learning product, Airlearn, reached an annual recurring revenue (ARR) milestone of $400,000 in the US within just four months of its launch.
Founded in 2015 by Gaurav Munjal, Hemesh Singh, and Roman Saini, Unacademy initially started as an online test preparation platform and has since diversified into offline and hybrid learning models. The company also operates other verticals such as Relevel (job assessments), NextLevel (gamified job search), and Graphy (course creation and management).
Despite its strides, Unacademy faced challenges, including a 40% year-on-year decline in consolidated net loss to ₹1,678.1 crore for the financial year 2022-23 (FY23), while operating revenue increased by 26% to ₹907 crore.
This year, Unacademy underwent a restructuring exercise, leading to the layoff of 250 employees. Additionally, one of its co-founders, Hemesh Singh, transitioned to an advisory role in mid-2024.
Unacademy had also been in talks for a potential merger with K-12 Techno Services earlier this year. However, these discussions were shelved due to concerns regarding the latter’s “shaky unit economics.”