Unacademy, a leading name in India’s edtech sector, has revealed major strides towards profitability in its offline learning segment. As shared by CEO and cofounder Gaurav Munjal during a recent townhall, nearly 70% of Unacademy offline centres are set to turn profitable in 2025. This announcement comes amidst a broader sector slowdown, with many players struggling due to high cash burn and unsustainable expansion strategies. Notably, Unacademy’s offline operations contributed 40% to its overall revenue in 2024, showcasing the growing strength of its hybrid education model.
Munjal emphasized a firm shift in strategy—away from acquisitions and towards operational profitability. He admitted that earlier, Unacademy tried to grow through multiple acquisitions, but learned that such inorganic strategies do not work well in India’s edtech market. Instead, the company now focuses solely on its core strengths. Graphy and PrepLadder, two of its owned entities, are already cash-flow positive. Meanwhile, the language learning app Airlearn has grown rapidly, achieving $2 million in annual recurring revenue with nearly 70,000 daily active users.
The company’s financials mirror this transformation. Unacademy cut its cash burn from over INR 1,000 Cr to under INR 200 Cr within three years. Simultaneously, the unicorn reduced its standalone net loss by 82.09% in FY24, down to INR 285 Cr. This strategic reorientation highlights Unacademy’s commitment to sustainable growth, even as rumors of acquisitions or mergers continue to circulate. Munjal refuted these talks, asserting that Unacademy isn’t seeking a sale and is instead focused on long-term value creation.
With INR 1,200 Cr still in the bank, a growing portfolio of profitable products, and a strong offline presence, Unacademy seems poised for stability in an unpredictable edtech market. This progress marks a pivotal chapter not only for the startup but for India’s larger education technology ecosystem.
1. Introduction to Unacademy and Its Core Business Model
1.1 Founders, Background, and Vision
Unacademy was founded in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh. Gaurav Munjal previously founded Flat.to, while Roman Saini, an ex-IAS officer, brought credibility from the education sector. Hemesh Singh provided strong tech expertise. The trio combined their skills to create an edtech platform with a mission to democratize learning in India.
1.2 Services and Products
The platform began with online video lessons for competitive exams like UPSC, JEE, and NEET. Over the years, it expanded to include paid subscriptions, test prep services, and creator-led offerings like Graphy. In 2024, it launched Airlearn, a language-learning app targeting global users. Through PrepLadder, it also provides post-graduate medical exam preparation.
1.3 Working and Revenue Model
Unacademy follows a freemium model. While basic content is free, students pay for structured courses, live classes, and test series. Revenue streams include:
- Subscription fees from test preparation programs
- Course sales on Graphy
- Language learning subscriptions on Airlearn
- Offline coaching centre fees
This multi-pronged strategy has allowed Unacademy to diversify income and stabilize revenue despite fluctuating market trends.
2. Funding Background and Market Position
2.1 Financial Backing and Valuation
Unacademy has raised over $800 million from marquee investors like SoftBank, General Atlantic, Sequoia Capital India, and Tiger Global. At its peak, it was valued at $3.4 billion. However, following market corrections in the edtech space, valuations across the sector have dropped. Despite this, Unacademy maintains strong investor trust.
2.2 Competitive Landscape
The Indian edtech ecosystem is crowded with players like BYJU’S, Vedantu, PhysicsWallah, and Allen. While many have pursued aggressive acquisition-led growth, Unacademy has pivoted towards internal efficiencies and offline expansion. This strategic shift differentiates its model amid the downturn.
3. Strategic Shift: From Online-Only to Hybrid
3.1 Growth of Offline Centres
Unacademy offline centres have seen significant traction in tier 1 and tier 2 cities. These centres focus on exam prep for JEE, NEET, and UPSC. In 2024, offline operations contributed 40% of the company’s total revenue. By 2025, 70% of these centres are expected to achieve profitability at a unit level.
3.2 Focus on Profit Over Expansion
Gaurav Munjal candidly shared that the company once made the mistake of chasing acquisitions to drive growth. He stated that such strategies often fail in the Indian market. Instead, Unacademy now keeps its “blinders on”—prioritizing profitability over external distractions.
4. Airlearn: A New Growth Engine
4.1 Rise of Language Learning
Unacademy entered the language learning space in June 2024 with a product initially branded as Unacademy: Learn a Language (ULL), later rebranded as Airlearn. The app teaches languages like Spanish, French, Italian, and German. It blends grammar learning, practice, and cultural insights to create a holistic experience.
4.2 Key Metrics of Success
Airlearn has achieved $2 million in annual recurring revenue (ARR) and 70,000 daily active users in less than a year. It has also crossed over 500,000 downloads on the Google Play Store. This makes it one of the fastest-growing products in the Unacademy Group.
5. Financial Transformation and Cash Burn Reduction
5.1 Slashing Losses
Unacademy reduced its standalone net loss by 82.09%, dropping from INR 1,592 Cr in FY23 to INR 285 Cr in FY24. The startup also brought down its overall cash burn in the core business to under INR 200 Cr—a sharp cut from INR 1,000 Cr just three years ago.
5.2 Cash Reserves and Default Alive Status
Currently, Unacademy has INR 1,200 Cr in cash reserves. Munjal described the company as in a “default alive” state—able to survive without new external funding. This shift speaks volumes about internal cost efficiencies and a sustainable future.
6. Clarifying Acquisition Rumors
6.1 The Allen and K-12 Merger Talks
In late 2024, rumors surfaced that Allen was in talks to acquire Unacademy for $800 million. Another report claimed a merger with K-12 Techno was on the cards. Munjal, however, dismissed these claims via X, stating clearly that Unacademy is not exploring any sale or M&A deal.
6.2 Building for the Long Term
Munjal’s strategy is focused on sustainable growth. The company aims to continue building Unacademy offline centres, enhancing digital offerings like Airlearn, and improving cash flows instead of seeking a premature exit.
7. Learning for Startups and Entrepreneurs
7.1 Organic Growth Works Best
Unacademy’s shift from acquisition-heavy growth to internal profitability is a key takeaway. Startups should focus on core competencies and avoid chasing inorganic expansion.
7.2 Focus on Profitability Early
Even unicorns need to think about profits. Sustainable cash flow and reduced burn are crucial for long-term survival—especially in uncertain funding climates.
7.3 Diversify Revenue Streams
With products like Graphy, PrepLadder, and Airlearn, Unacademy demonstrates the value of building multiple earning avenues. This helps in weathering downturns in any one segment.
7.4 Adapt to Market Feedback
The rise of Unacademy offline centres shows that hybrid models still have immense potential in India. Listening to market needs is critical.
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