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Unacademy slashes core biz cash burn to Rs 200 Cr in 2025: Gaurav Munjal

EntrackrEntrackr · 11m ago
Unacademy slashes core biz cash burn to Rs 200 Cr in 2025: Gaurav Munjal
Medial

Unacademy slashes core biz cash burn to Rs 200 Cr in 2025: Gaurav Munjal Unacademy CEO Gaurav Munjal has shared an update on the company’s financial and operational performance. According to Munjal, Unacademy has reduced its cash burn in the core business from over Rs 1,000 crore annually three years ago to under Rs 200 crore this calendar year. This is about half of what the company spent last year. In a thread on social media platform X, Munjal said the company currently has Rs 1,200 crore in the bank and is in a “default alive” state. He added that some of Unacademy’s businesses, including Graphy and PrepLadder, are generating cash on a monthly basis. For context, the SoftBank-backed edtech unicorn cut its losses by 62% to Rs 631 crore in FY24, while its revenue remained flat during the period. Reflecting on past decisions, Munjal said edtech companies that grow through multiple acquisitions are unlikely to succeed in the current market. He said Unacademy had made this mistake earlier and is now focusing on profitability without getting distracted by external developments. On the offline front, Munjal said that around 70% of Unacademy’s centers are expected to be profitable at the center level this year. These centers are showing outcomes in exam categories such as JEE, NEET, and UPSC. He also pointed to Airlearn as the fastest-growing product within the group. Airlearn has recorded nearly 70,000 daily active users and $2 million in annual recurring revenue over the last 12 months. Munjal outlined three focus areas for the company: making the core business profitable, building tech products such as Airlearn and Graphy, and staying focused on internal goals instead of market noise.

upGrad set to acquire Unacademy in deal with break fee clause

EntrackrEntrackr · 6d ago
upGrad set to acquire Unacademy in deal with break fee clause
Medial

Online higher education platform upGrad has signed a term sheet to acquire edtech firm Unacademy in an all-stock transaction. The firms will not disclose the valuation until the deal is completed and formally filed. The term sheet was signed after earlier talks between the two companies collapsed in January due to differences over valuation. Announcing the development, upGrad co-founder Ronnie Screwvala said the deal will be structured as a share swap and includes a break fee if the transaction does not close. Importantly, Unacademy’s co-founder and chief executive Gaurav Munjal will continue to lead the company and focus on building online learning products. Screwvala stated, “We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with founder and CEO Gaurav Munjal staying on to build Unacademy and focus on creating online education products that learners love.” He added that the combined entity could benefit from Unacademy’s product capabilities and upGrad’s broader learning ecosystem. According to Screwvala, upGrad’s integrated model spanning segments from K12 to lifelong learning could gain further momentum if the transaction closes. Munjal confirmed the development and said the proposed acquisition will be executed through a 100% share swap deal. Highlighting Unacademy’s recent changes, Munjal said the company has spent the past year restructuring parts of the business. “We consolidated company-operated centres with franchise partners so we could refocus on building great online education products,” he said. The company also completed a Rs 50 crore ESOP buyback, with nearly 40% of former employees participating, Munjal said. He added that Unacademy currently has more than $100 million in cash reserves. On the financial side, Unacademy reported a 16% year-on-year decline in revenue to Rs 826.3 crore in FY25 from Rs 988 crore in FY24. However, the SoftBank-backed firm reduced its EBITDA loss by 38% to Rs 305 crore and cut its net loss by 31% to Rs 436 crore.

Yes, we are in M&A talks: Unacademy's Gaurav Munjal

EntrackrEntrackr · 3m ago
Yes, we are in M&A talks: Unacademy's Gaurav Munjal
Medial

Yes, we are in M&A talks: Unacademy's Gaurav Munjal Munjal’s remarks come amid media reports that higher education and skilling platform upGrad is in talks to acquire Unacademy at a valuation of $300 to 320 million. “Yes, we are in M&A conversations, and yes, if we find a win-win situation where consolidation can lead to a stronger entity, we will go ahead with this,” Unacademy co-founder Gaurav Munjal said in a post on social media platform X. Munjal’s remarks come amid media reports that higher education and skilling platform upGrad is in talks to acquire Unacademy at a valuation of $300 to 320 million, nearly 90% lower than the startup’s peak valuation of about $3.5 billion during the 2021 funding boom. In a detailed post, Munjal reflected on Unacademy’s journey, which began as a YouTube channel in 2010 that he started while in college to help friends with computer science concepts. The platform was formally launched in December 2015 and quickly scaled by focusing on free content, strong educator communities, and a tech-first approach to learning. The company saw rapid growth between 2019 and 2021 after launching its subscription product, reaching close to one million paid subscribers and raising over $700 million across multiple funding rounds. However, Munjal said the post-Covid shift of learners back to offline coaching, aggressive cash burn, and the rise of lower priced competitors hurt the business. He acknowledged that Unacademy might now be valued at less than $500 million, compared to around $3.5 billion three years ago, and noted that chasing valuation earlier led to several strategic missteps. Over the past three years, Unacademy has cut costs sharply, reduced its annual burn from about Rs 1,400 crore in 2022 to under Rs 175 crore in 2025, lowered pricing, and refocused on content and subscriptions. For FY25, the SoftBank-backed firm reported Rs 826 crore revenue and reduced its net losses by 31% year-on-year to Rs 436 crore. While consolidation remains an option, Munjal said the company is now focused on building sustainable education products with strong unit economics rather than pursuing headline valuations.

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