New updates have been reported about Unacademy (PC:UNACD)
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Unacademy, a prominent player in India’s edtech sector, has experienced a dramatic reduction in its valuation, now estimated at under $500 million, a stark contrast to its $3.5 billion peak during the pandemic. CEO Gaurav Munjal acknowledged this decline in a recent note, marking the company’s 10th anniversary, and confirmed ongoing merger and acquisition discussions. The edtech landscape in India has shifted significantly post-pandemic, with companies like Unacademy and Byju’s facing challenges as students return to traditional classrooms, leading to decreased demand and intensified competition. Unacademy, once thriving, has seen its market share erode as competitors introduced more affordable alternatives, a situation Munjal attributes to the company’s complacency and lack of innovation in pricing strategies.
In response to these challenges, Unacademy has undertaken a comprehensive operational overhaul, reducing its annual financial burn from ₹14 billion in 2022 to under ₹1.75 billion this year. This has involved significant layoffs, marketing budget cuts, and a renewed focus on its core subscription model. Despite these efforts, the company’s strategic direction has been questioned, particularly as Munjal shifts attention towards AirLearn, an AI-driven language learning app, causing friction with some investors. Unacademy’s financial journey includes raising approximately $854.3 million across 13 funding rounds, supported by notable backers such as SoftBank and Tiger Global. Recent reports indicate that rival UpGrad has shown interest in acquiring Unacademy, with discussions valuing the company between $300 and $400 million.