Unacademy, one of India's leading edtech startups, has been making headlines recently due to rumors of a potential sale to Allen Career Institute Pvt. Ltd. However, co-founder and CEO Gaurav Munjal has come forward to clarify that Unacademy is not up for sale. In a statement on social media, he elaborated on the company's long-term vision and commitment to building Unacademy for the future.
The Clarification
Munjal's message to the public was clear: "We have many years of runway. We are building Unacademy for the long run. We are not doing any sale or M&A. Ignore the rumours."
This statement puts to rest any speculation about a possible acquisition by Allen Career Institute Pvt. Ltd. at a reported $800 million, well below Unacademy's peak valuation of $3.4 billion.
Financial Health
Despite the rumors swirling around Unacademy, Munjal disclosed the company's impressive financial performance. He stated that the current year is expected to be Unacademy's best yet in terms of growth in the offline business and overall unit economics. Furthermore, with cash reserves of approximately Rs 1,500 crore, no debt, and a runway of over 4 years, Unacademy appears to be in a strong financial position.
Performance Metrics
In fiscal year 2024, Unacademy recorded a total revenue of Rs 988.4 crore, representing a 5.3% decline compared to the previous year. However, the company's losses shrunk to Rs 631 crore, a significant improvement from Rs 1,678 crore in the previous fiscal year. Munjal also noted that Unacademy Centres' business saw a 30% growth with notable improvements in unit economics, demonstrating the company's ability to adapt and thrive in a challenging market.
Munjal's clarifications reassured investors, employees, and stakeholders.
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