“I have said this before, I’ll say it again. This year will be Unacademy’s best in terms of growth in the offline business and overall unit economics. We have many years of runway. We are building Unacademy for the long run. We are not doing any sale or M&A. Ignore the rumors,” says Gaurav Munjal, Co-founder and CEO of Unacademy, firmly dismissing speculation surrounding the company’s future.
In a quick year-in-review, Munjal laid out the significant strides Unacademy has made in 2024, particularly in its offline business. The company’s Unacademy Centres business saw a 30 per cent growth with marked improvements in unit economics, while the online test prep business faced a dip but managed to significantly reduce cash burn by improving unit economics.
“At the group level, cash burn is down by 50%, and we have healthy cash reserves of $170 million with no debt, offering us a runway of over four years,” Munjal added. Additionally, Graphy, one of Unacademy’s verticals, has seen a 40% growth in its business, operating profitably, while Airlearn, an initiative launched in the U.S., crossed nearly $400K in annual recurring revenue (ARR) within just a few months of launch.
Reports surfaced last week suggesting that Unacademy is in advanced discussions with Allen Career Institute for a potential sale valued at USD 800 million—markedly lower than its previous peak valuation of USD 3.4 billion. According to these reports, the deal would reportedly include Unacademy’s cash reserves of USD 160 million, though approval from Allen’s promoters, the Maheshwari family, remains a key hurdle. While some stakeholders are said to be aligned with the proposed terms, the deal has not yet received final approval.
In response to these rumors, Munjal vehemently denied any ongoing sale discussions. He dismissed the media reports, reiterating that Unacademy is not pursuing any sale or merger and that the company is focused on building for the long term.
Munjal emphasised the company’s commitment to growth, especially through its shift to offline operations, which marks a strategic pivot after nearly a decade of focusing primarily on online education. This transition aims to ensure Unacademy’s long-term sustainability and position it for continued growth, even as the edtech sector faces challenges from a post-pandemic slowdown and shifting investor sentiment.
Munjal’s remarks have been clear, Unacademy remains committed to its long-term vision, regardless of the ongoing discussions.
