Unacademy’s co-founder and CEO Gaurav Munjal has definitively dismissed speculation about a potential fire sale to Allen Career Institute, emphatically stating that the edtech company is focused on long-term growth and has no plans for an acquisition.
In a direct and unequivocal social media statement, Munjal declared, “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.” This came in response to reports suggesting Allen was in talks to acquire Unacademy at a valuation significantly lower than its 2021 peak of $3.4 billion.
The company’s recent financial results provide context to Munjal’s confidence. In fiscal year 2024, while Unacademy experienced a slight revenue dip of 5.3% to ₹988.4 crore from ₹1,044 crore in the previous year, the company made significant strides in cost management. Most notably, it dramatically reduced its losses from ₹1,678 crore in FY23 to ₹631 crore this year, highlighting improved operational efficiency.
Munjal backed his claims with concrete financial details. The company currently holds cash reserves of ₹1,500 crore (approximately $170 million), carries no debt, and has a runway extending over four years. These figures underscore the company’s financial stability and strategic positioning.
Beyond financial metrics, Unacademy has shown promising growth in several areas. Its offline arm, Unacademy Centres, recorded a 30% growth with improved unit economics. Graphy, another venture under the Unacademy umbrella, grew by 40% profitably. The company’s international venture, Airlearn, has already achieved an annual recurring revenue of nearly $400,000 in the U.S. market within months of its launch.
The CEO’s bullish outlook is particularly noteworthy. “This year will be Unacademy’s best in terms of growth in the offline business and overall unit economics,” Munjal asserted, signaling confidence in the company’s strategic direction.
These developments come at a crucial time for the edtech sector, which has faced significant challenges in recent years. By aggressively managing costs, diversifying revenue streams, and maintaining a strong cash position, Unacademy appears to be navigating the turbulent market with strategic precision.
Munjal’s resolute stance sends a clear message: Unacademy is not a company looking for an exit, but one committed to sustainable growth and long-term value creation. As the edtech landscape continues to evolve, the company seems determined to chart its own course, backed by robust financials and a clear strategic vision.
For now, the rumours of a takeover appear to be just that—rumours. Unacademy remains steadfastly independent, with its sights set firmly on future growth.
