'We have many....': Unacademy CEO Gaurav Munjal denies Rs 800 crore sale deal with Allen

Unacademy CEO and co-founder Gaurav Munjal has firmly dismissed rumors about the edtech platform being acquired by Allen Career Institute for $800 million. In a social media post, Munjal stated, "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."

These comments follow reports suggesting Allen was in talks to acquire Unacademy at a significantly reduced valuation compared to its 2021 peak of $3.4 billion. Munjal’s statement not only refuted these claims but also redirected attention to the company’s financial health and growth plans.

Unacademy’s financial performance for FY24 shows mixed results. While total revenue decreased by 5.3% to ₹988.4 crore compared to ₹1,044 crore in FY23, the company managed to cut its losses significantly. Losses dropped from Rs 1,678 crore in FY23 to Rs 631 crore in FY24. Munjal credited this to improved unit economics and a 50% reduction in cash burn across the group.

Highlighting the company’s strong financial position, Munjal shared:

Cash reserves: Rs 1,500 crore (approximately USD 170 million).
Debt: None.
Runway: Over four years.
Despite facing challenges in the online test preparation segment, Unacademy has shown growth in other areas:

Unacademy Centres, its offline learning division, saw 30% growth with better unit economics.
Graphy, a platform for creators, grew by 40% profitably.
Airlearn, a new product aimed at international markets, achieved an annual recurring revenue (ARR) of nearly USD 400,000 in the U.S. within just months of launch.
Munjal expressed confidence in the company’s future, stating, “This year will be Unacademy’s best in terms of growth in the offline business and overall unit economics.”

For now, Munjal’s message is clear: Unacademy is not for sale and is well-positioned for long-term growth, focusing on resilience and improved performance.