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The company started as a simple YouTube educational channel and eventually became one of India’s largest edtech unicorns.
However, over time, changing market conditions, rising competition and shifts in funding models significantly impacted the company’s growth trajectory.
Unacademy began around 2015 as a YouTube-based education platform. Its founders, Gaurav Munjal, Roman Saini and Hemesh Singh, started the platform with the aim of enabling India’s best teachers to reach millions of students through online education. In its early days, the platform was entirely based on free content and quickly became popular among students preparing for UPSC, JEE, NEET and other competitive examinations.
Early Growth and the EdTech Boom
As its popularity increased, the company began raising large-scale funding between 2017 and 2019. Unacademy received backing from major global investors such as SoftBank, Tiger Global, General Atlantic and Peak XV Partners. The company raised more than USD 850 million in funding.
During the Covid-19 pandemic, when the demand for online education reached its peak, Unacademy benefited significantly and its valuation rose to nearly USD 3.4-3.5 billion.
Rapid Expansion and Offline Strategy
Following its rapid growth during the pandemic, Unacademy did not limit itself to online education alone. The company expanded aggressively through offline coaching centres and acquisitions.
During this period, it strengthened platforms like PrepLadder and Graphy and launched several offline coaching centres across the country. However, this aggressive expansion later became a challenge as operational costs started increasing rapidly.
As offline educational institutions resumed operations after the pandemic, demand in the edtech sector began to decline. At the same time, low-cost competitors such as Physics Wallah established a strong market presence. This increased pressure on Unacademy and exposed challenges in its business model.
EdTech Crisis and Growing Challenges
Marketing expenses, hiring and offline expansion significantly increased the company’s costs, while growth was no longer as fast as before. During 2024 and 2025, the company focused on restructuring its business model and reducing expenses.
According to reports, Unacademy aimed to reduce its cash burn from nearly INR 1,000 crore to below INR 200 crore. The company was also reported to have cash reserves of around INR 1,200 crore.
Financial Improvements and Reduced Cash Burn
During this period, several units such as PrepLadder and Graphy began generating revenue, while some offline centres moved towards profitability.
Despite these financial improvement efforts, the company’s valuation witnessed a major decline. While Unacademy was valued at nearly USD 3.5 billion during the pandemic, by 2025-2026 its valuation reportedly dropped below USD 500 million.
Declining Valuation and Industry Shift
This decline signaled broader changes across the edtech sector and made it clear that the pandemic-driven edtech boom was gradually stabilizing. This phase became a major turning point for India’s edtech industry, where the focus shifted from aggressive growth to profitability and sustainability.
Leadership Changes and Focus on AirLearn
During the same period, leadership changes were also seen within the company. Founders Gaurav Munjal and Roman Saini gradually stepped away from daily operations and shifted their focus toward a new AI-based project called AirLearn.
As a result, the responsibility for Unacademy’s traditional test-prep business was handed over to new leadership. This was seen as a sign that the company had entered a new transition phase.
upGrad Deal and Industry Consolidation
During 2025-2026, one of the biggest developments was the discussion around a potential merger or acquisition deal between Unacademy and upGrad.
Reports also suggested that both companies had signed a term sheet, indicating that the Indian edtech sector was moving towards consolidation. If completed, the deal could become a major development for the Indian edtech industry.
Impact on Students and Employees
The impact of these changes was not limited to the company alone, but also affected employees and students. Several offline centres were shut down, layoffs were reported and the availability of some courses was impacted. The decline in ESOP value also affected employee morale.
Current Position and Future Direction
Today, Unacademy stands at a stage where it is attempting to move towards profitability.
The company is now working on stabilizing itself through new business models, AI-based education platforms, and possible merger opportunities. The founders are also focusing on new products and technologies, indicating that the company is entering a new phase beyond its original business model.
Conclusion: A Learning Story from the EdTech Industry
Unacademy’s journey is an important example within India’s startup ecosystem, demonstrating how difficult it can be to maintain stability and profitability after rapid growth.
The story also highlights that for any startup, not only funding and expansion but also a strong business model and long-term sustainability are essential for success.
