Unacademy Co-founder and CEO Gaurav Munjal has firmly dismissed speculations about a potential sale or merger, reaffirming the company’s commitment to long-term growth. “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,” Munjal stated.
Strong Performance in 2024
In a year marked by significant challenges in the edtech sector, Unacademy achieved notable milestones:
- Unacademy Centres, its offline business, recorded a 30% growth, driven by improvements in unit economics.
- The online test prep business faced a slowdown but succeeded in reducing cash burn by 50% through better cost management.
- At the group level, Unacademy boasts $170 million in cash reserves, offering over four years of financial runway with no debt.
- Graphy, a vertical within Unacademy, reported a 40% growth and is now operating profitably.
- Airlearn, a new U.S.-based initiative, achieved $400,000 in annual recurring revenue (ARR) within just a few months of launch.
Denial of Sale Rumors
Recent media reports suggested that Unacademy was in advanced talks with Allen Career Institute for a potential sale valued at $800 million, a steep decline from its earlier valuation of $3.4 billion. The reports claimed the deal might include Unacademy’s cash reserves of $160 million, though final approval from Allen’s promoters was pending.
Gaurav Munjal categorically denied these claims, stating, “We are not pursuing any sale or merger. The rumors are baseless.” He reiterated Unacademy’s focus on building for the long term and emphasized its strong financial position and growth trajectory.
Strategic Shift to Offline Education
After nearly a decade of prioritizing online education, Unacademy has strategically expanded into offline operations. The move comes amid challenges in the edtech sector, such as a post-pandemic slowdown and changing investor sentiment. Munjal highlighted the company’s progress in this area, positioning Unacademy for long-term sustainability and growth.
Despite challenges in the broader market, Munjal’s remarks reflect Unacademy’s unwavering commitment to its vision. By focusing on improving unit economics, expanding its offline presence, and innovating with new ventures like Graphy and Airlearn, the company aims to solidify its position as a leader in the edtech space.
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