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upGrad–Unacademy deal called off over valuation differences

EntrackrEntrackr · 6d ago
upGrad–Unacademy deal called off over valuation differences
Medial

upGrad–Unacademy deal called off over valuation differences Confirming the development, Ronnie Screwvala, co-founder of upGrad, told Entrackr, “Yes, we are not proceeding due to valuation differences." The much-speculated acquisition talks between online higher education platform upGrad and test-prep major Unacademy have been called off after both parties failed to reach a consensus on valuation, according to sources aware of the matter. While we cannot comment on specific numbers, it is fair to say that we were unable to arrive at a mutually agreeable valuation. Entrackr had earlier reported that upGrad and Unacademy were engaged in merger and acquisition discussions as consolidation accelerates across India’s edtech sector. The talks drew attention at a time when Unacademy was navigating internal restructuring, implementing cost-rationalisation measures, and sharpening its focus on its core test-preparation business. In recent months, Gaurav Munjal, co-founder and CEO of Unacademy, had publicly acknowledged that the company was exploring various strategic options, including fundraising and potential M&A transactions, while maintaining that no decision had been finalised. Munjal had also clarified the company’s position on employee stock option (ESOP) exercises and valuation expectations, amid questions around internal liquidity and employee compensation. Separately, Unacademy has put on hold proposed amendments to its 2018 ESOS scheme following strong pushback from former employees. The objections were primarily linked to the tax implications and liquidity concerns associated with exercising stock options at a significantly lower valuation compared to earlier rounds. Unacademy has yet to comment officially on the stalled merger talks. Founded in 2015, Unacademy has raised over $800 million from investors including SoftBank, General Atlantic, and Tiger Global, and was last valued at around $3.4 billion during the peak of the edtech funding cycle. However, like several peers in the sector, the company has faced pressure to recalibrate growth expectations amid a prolonged funding slowdown. upGrad, which operates across higher education, upskilling, and overseas education segments, has previously pursued selective acquisitions to strengthen its portfolio.

Unacademy to pivot from company operated centres to a franchise model

EntrackrEntrackr · 4h ago
Unacademy to pivot from company operated centres to a franchise model
Medial

Unacademy to pivot from company operated centres to a franchise model Unacademy's Gaurav Munjal added that several major exam preparation verticals such as UPSC, NEET PG and CAT have turned contribution margin positive. Edtech unicorn Unacademy is recalibrating its business with a sharper focus on profitable growth after a year of significant cost correction, according to an internal email sent by co-founder and CEO Gaurav Munjal to employees. In the communication, Munjal said that Unacademy reduced its test prep burn to around Rs 200 crore in calendar year 2024 from nearly Rs 450 crore earlier. The reduction followed a series of operational changes including shutting down underperforming initiatives and prioritising core businesses. He added that several major exam preparation verticals such as UPSC, NEET PG and CAT have turned contribution margin positive. Munjal further added that PrepLadder and Graphy were cash flow positive for the full year. Meanwhile, language learning platform Airlearn scaled its annual recurring revenue from about $200,000 at the start of 2025 to nearly $3 million by the end of the year. As part of its restructuring, Unacademy plans to exit its company operated offline centre business over the coming months by converting these centres into franchise partnerships. According to Munjal, the franchise model allows local operators to manage operations while Unacademy provides academics, technology and reach. He said the transition is expected to be completed by April, after which the company will have a significantly leaner cost structure. The internal email comes shortly after the acquisition talks between Unacademy and upGrad were called off due to valuation differences. The discussions had been underway for several months amid a broader slowdown in edtech deal activity and valuation resets across the startup ecosystem. upGrad co-founder Ronnie Screwvala later confirmed that the deal did not materialise. Munjal said the calendar year 2026 would be focused on growth rather than survival, with improving unit economics across online test prep and faster than expected growth in Airlearn. He added that Unacademy is now positioned to scale with greater financial discipline.

Test-prep startup Exampur delays employees salaries for months, founder says, "we plan to pay in 3-4 months"

IndianStartupNewsIndianStartupNews · 2y ago
Test-prep startup Exampur delays employees salaries for months, founder says, "we plan to pay in 3-4 months"
Medial

Exampur, a test-prep startup, is facing financial difficulties, leading to unpaid staff salaries and unsettled full and final (F&F) payments for employees. The company's co-founder attributed the issues to a failed acquisition by upGrad and a subsequent shortage of funds. The acquisition caused operations to scale down, resulting in layoffs and employee departures. The co-founder sold personal holdings and mortgaged belongings to sustain the company, but salaries were still delayed. Exampur expects to pay off December salaries by February end and plans to pay off dues to ex-employees in the next three to four months. The edtech sector as a whole is experiencing funding challenges, with many startups making cost cuts and layoffs.

Exclusive: Unacademy’s PrepLadder Lays Off 145 Employees In Sales Strategy Rejig

Inc42Inc42 · 1y ago
Exclusive: Unacademy’s PrepLadder Lays Off 145 Employees In Sales Strategy Rejig
Medial

Unacademy-owned medical entrance test prep platform PrepLadder has undergone another round of layoffs, with around 145 employees being let go. This is the company's third round of layoffs in the past three years. The restructuring affected various teams, including sales, marketing, product, and tech, with the sales team being the most impacted. Unacademy confirmed the exercise and stated that it was necessary for enhancing business efficiency. The company is offering severance packages and extended medical insurance to the affected employees. The recent restructuring is attributed to increased involvement from Unacademy in PrepLadder's operations since its acquisition in 2020.

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