Unacademy, once one of India’s most visible edtech success stories, is now valued at under $500 million, a steep fall of nearly 85 percent from its $3.5 billion peak reached during the pandemic. The reset was confirmed by CEO Gaurav Munjal in a detailed note on social media platform X (formerly Twitter) – marking the company’s 10th anniversary, where he also acknowledged that the startup is in merger and acquisition discussions.
The downturn reflects a larger collapse in India’s edtech ecosystem. During the lockdown period, platforms like Unacademy and Byju’s saw unprecedented demand, raised billions, and expanded aggressively. But the momentum faded as students returned to physical classrooms and consumer demand normalised.
Byju’s, once India’s most valuable startup, has seen its valuation written down to near zero and is battling insolvency proceedings. A U.S. court last year ordered founder Byju Raveendran to pay more than $1.07 billion for ignoring directives and providing what it called “evasive, incomplete” information related to funds moved by the company’s U.S. unit.
In contrast, competitor Physics Wallah has emerged as a breakout winner, turning profitable and posting a strong market debut last month.
Munjal wrote that the past three years were the most difficult in Unacademy’s journey, with the company facing shrinking demand, higher competition, and internal disruption. The startup began losing market share in a category it once dominated. He admitted the company “got complacent,” citing a failure to innovate on pricing even as rivals launched lower-cost alternatives based on Unacademy’s early model.
The slowdown was compounded by Munjal’s growing focus on AirLearn, his new AI-first language learning app inspired by Duolingo. The shift caused unease among some Unacademy investors, who worried the core edtech business was being neglected during a challenging period.
Unacademy, founded in 2015, has raised over $854 million across 13 rounds, backed by marquee global investors including SoftBank, Tiger Global, Peak XV Partners, and General Atlantic. The company has spent the last two years restructuring its operations, slashing its annual burn from ₹14 billion in 2022 to less than ₹1.75 billion this year. Headcount reductions, cuts in marketing expenses, and a renewed focus on the core subscription business have been central to the reset.
Meanwhile, reports suggest that rival UpGrad has explored acquiring Unacademy in a deal valued between $300 million and $400 million, signalling consolidation in India’s post-pandemic edtech landscape.
Editor’s Note
India’s broader edtech sector has undergone one of its sharpest changes in recent years, as pandemic-era demand evaporated and offline learning returned as the preferred format for most students. Companies that scaled rapidly during lockdowns struggled to maintain growth, leading to mass layoffs, valuation write-downs, and tighter investor scrutiny. High customer acquisition costs, declining paid subscriptions, and unsustainable burn rates forced many firms to pivot, merge, or shut down entirely, while only a handful like Physics Wallah managed to stay profitable and expand. has explored acquiring Unacademy in a deal valued between $300 million and $400 million, signalling consolidation in India’s post-pandemic edtech landscape.
