Archive · 10 Dec 2025
Unacademy Explores M&A Amid Market Shifts
Unacademy, an online learning company, is looking to merge with or buy other companies to get stronger.
A few years ago, it was worth a lot of money, but now it's worth much less.
The company had a hard time when people started going back to offline classes and other companies started offering cheaper online lessons.
The CEO, Gaurav Munjal, says they made some mistakes but are now focusing on their strengths, like YouTube content and subscriptions.
They've cut costs a lot and are working towards making a profit next year.
Munjal believes that even though things were tough, Unacademy is still around to fight another day.
Unacademy is exploring mergers and acquisitions to stabilize and grow after three years of contraction.
The company's valuation has dropped from $3.5 billion to less than $500 million.
Challenges included learners returning to offline centers, cheaper competitors, and a market shift to profitability.
Unacademy has reduced its burn rate from ₹1,400 crore in 2022 to under ₹175 crore in 2025.
The company is targeting profitability next year and has 'decades of runway' with current resources.
- Who
- Unacademy, cofounder and CEO Gaurav Munjal
- What
- Exploring mergers and acquisitions to stabilize and grow
- When
- Current (2025), with reflections on 2022-2024 challenges
- Where
- India, primarily online education market
- Why
- To consolidate, strengthen the entity, and adapt to market changes
- Current Valuation
- Less than $500 million
- Peak Valuation
- $3.5 billion
- Revenue
- ₹600 crore annually
- Burn Rate Reduction
- From ₹1,400 crore in 2022 to under ₹175 crore in 2025
- Runway
- Decades
- Profitability Target
- Next year
- Key Challenges
- Learners returning offline, cheaper competitors, market shift to profitability