Unacademy Is Not Up For Sale, CEO Gaurav Munjal Says, Amid Reports Of Deal With Allen

Unacademy's co-founder and CEO Gaurav Munjal on Saturday cleared the air around his edtech startup's reported fire sale to Allen Career Institute Pvt. Ltd. of Kota.

"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 rumours," Munjal wrote on social media platforms.

Earlier this week, it was reported Allen was in talks to acquire Unacademy at $800 million, much below its peak valuation of about $3.4 billion.

Munjal added that the current year will be Unacademy’s best in terms of growth in the offline business and overall unit economics.

"Unacademy Centres’ business grew by 30% with significant improvement in unit economics. Online test prep business had degrowth but we we were able to improve unit economics significantly. Cash burn at group level is further down by 50%," he wrote, adding that there are cash reserves of about Rs 1,500 crore, with no debt and a runway of over 4 years.

In Fiscal 2024, Unacademy recorded Rs 988.4 crore in total revenue, a 5.3% decline compared to Rs 1,044 crore in FY23. Loss shrunk to Rs 631 crore as against Rs 1,678 crore in FY23.