Unacademy co-founder and CEO Gaurav Munjal has shut down speculation over his edtech startup's rumored acquisition by Allen Career Institute for $800 million. Taking to social media, Munjal firmly said, “We have many years of runway. We are building Unacademy for the long term. We do not carry out any sales or mergers and acquisitions. Ignore the rumors.
The statement comes after reports suggested that Allen was negotiating the acquisition of Unacademy at a valuation well below its 2021 high of $3.4 billion. Munjal rejected these claims and focused on the company's performance and prospects.
In FY24, Unacademy's total revenue fell 5.3% to ₹988.4 crore, compared to ₹1,044 crore in FY23. However, the company significantly reduced its losses, rising from ₹1,678 crore in FY23 to ₹631 crore this year. Munjal highlighted improvement in unit profitability and a 50% reduction in cash burn at the group level.
He also revealed the current financial situation of Unacademy:
- Cash reserves: ₹1,500 crore (approximately $170 million).
- Debt: None.
- Track: More than four years.
Despite the challenges faced in the online test preparation segment, Munjal noted positive progress in other areas:
- Unacademy Centers, the company's offline arm, recorded 30% growth with improved unit profitability.
- Graphy, another company under the Unacademy umbrella, saw profitable growth of 40%.
- Airlearn, a newer offering targeting international markets, achieved annual recurring revenue (ARR) of nearly $400,000 in the United States within months of its launch.
Munjal added confidence by saying, “This year will be Unacademy's best in terms of growth in offline business and overall unit economics. »
Munjal's remarks reflect a company's intention to control its speech in the context of financial oversight. While reports of acquisition talks have sparked debate, Unacademy appears to be striving to prove its resilience through improved performance and a vision for long-term growth.
For now, Munjal's message is clear: Unacademy is not for sale and its trail is far from exhausted.
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