Unacademy’s co-founder and CEO, Gaurav Munjal, has put an end to speculation about his edtech startup’s rumored acquisition by Allen Career Institute for $800 million. Taking to social media, Munjal stated firmly, “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.”
The statement comes after reports suggested Allen was negotiating to acquire Unacademy at a valuation far below its 2021 peak of $3.4 billion. Munjal dismissed these claims and shifted the focus to the company’s performance and outlook.
In FY24, Unacademy’s total revenue dipped 5.3% to ₹988.4 crore compared to ₹1,044 crore in FY23. However, the company slashed its losses significantly—from ₹1,678 crore in FY23 to ₹631 crore this year. Munjal highlighted improved unit economics and a 50% reduction in cash burn at the group level.
He also revealed Unacademy’s current financial position:
- Cash reserves: ₹1,500 crore (approximately $170 million).
- Debt: None.
- Runway: Over four years.
Despite challenges in the online test prep segment, Munjal noted positive strides in other areas:
- Unacademy Centres, the company’s offline arm, recorded 30% growth with improved unit economics.
- Graphy, another venture under Unacademy’s umbrella, grew by 40% profitably.
- Airlearn, a newer offering targeting international markets, achieved an annual recurring revenue (ARR) of nearly $400,000 in the U.S. within months of launch.
Munjal doubled down on his confidence, stating, “This year will be Unacademy’s best in terms of growth in the offline business and overall unit economics.”
Munjal’s remarks reflect a company intent on controlling its narrative amidst financial scrutiny. While reports of acquisition talks have sparked debate, Unacademy seems focused on proving its resilience through improved performance and a vision for long-term growth.
For now, Munjal’s message is clear: Unacademy isn’t up for sale, and its runway is far from running out.