In response to rumors circulating about a potential acquisition, Unacademy co-founder and CEO Gaurav Munjal firmly denied reports that Allen Career Institute was negotiating to acquire Unacademy for $800 million. This amount is a substantial decrease from Unacademy’s 2021 valuation of $3.4 billion. On December 7, Munjal took to LinkedIn to address the speculation, calling the rumors baseless.
This decision”I will reiterate what I have said previously. In terms of both overall unit economics and growth in our offline business, this year will be the best for Unacademy. We have plenty of runway ahead. We’re building Unacademy for the long term, and we’re not pursuing any sales or M&A deals. Ignore the rumors,” Munjal posted.
Munjal also highlighted the company’s recent successes, including a 30% growth in its offline centers, significant improvements in unit economics, and a 50% reduction in cash burn at the group level. With $170 million in cash reserves and no debt, Unacademy is well-positioned financially with a runway of more than four years. Additionally, he emphasized the growth of subsidiaries like Graphy, which saw a 40% profitable expansion, and Airlearn, which achieved an impressive $400,000 in annual recurring revenue shortly after launching in the US.
Alakh Pandey, the founder and CEO of Physics Wallah, however, changed the direction of the conversation when he left a remark on Munjal’s article. “It sounds fantastic. I long for the days of intense competitiveness. The same is what I’m waiting for. We provide students more options when we compete. “Good luck,” wrote Pandey.
Pandey’s comment, while polite, carries significant context. Known for his humble beginnings with a modest salary of Rs 5,000 per month, Pandey famously turned down Unacademy’s acquisition offer of Rs 75 crore, choosing to remain independent. By 2024, Physics Wallah has grown from a YouTube channel to a $2.8 billion unicorn as a result of this choice.
As Unacademy focuses on expanding its offline operations and optimizing unit economics, Physics Wallah continues to prioritize affordability and accessibility for students.
