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Edtech company Unacademy will shut down its company-run offline centres and move fully to a franchise model over the next few months, founder Gaurav Munjal told employees in an internal email. The decision comes shortly after acquisition talks between Unacademy and upGrad collapsed due to disagreements over valuation and deal structure.
The transition is expected to be completed by April. After that, Unacademy will no longer directly run any offline centres. Munjal said this change will improve the company’s cost structure, as franchise partners will take care of operational expenses.
“Unacademy has always been exceptional at one thing: building great online learning products. So we are going back to our strengths. Unacademy will be an online-first company moving forth, like it was when we started in 2015,” a company spokesperson told Moneycontrol.
Munjal also spoke about cost cuts made over the past year. Unacademy reduced its test-prep losses from around Rs 450 crore in CY2024 to about Rs 200 crore. This was done by shutting down weak businesses and focusing on areas that were performing better. Several of Unacademy’s main businesses are now making money at the contribution level.
The announcement follows recent leadership changes at the company. Earlier this year, Munjal and co-founder Roman Saini stepped away from daily operations. Co-founder Sumit Jain was appointed CEO of Unacademy’s core test-prep business.
Unacademy currently has around Rs 1,100 crore in cash, according to earlier Moneycontrol reports. The company is expected to finalise its future plans as it completes the shift away from running offline centres itself. “We know what we are good at. We know where we are going. And now, with the right structure in place, we get to do what builders love most: grow,” in a mail Manjul wrote.
